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– Carolynn Look (Based on Bloomberg)
Pair's Outlook
EUR/USD topped expectations and is now attempting to conclusively break the upper boundary of the ascending channel pattern on the hourly chart. The pair managed to dash through resistances at 1.0505 and 1.0513 before overstepping the trend-line in a prominent green candle for the morning session. We will look for the rate to erase some of the gains in order to stay below 1.0533, while an alternative scenario would lead to tests of 1.0580, the monthly Pivot Point. Nevertheless, risk will be skewed generally to the upside until mid-February or early March when the upper senior boundary comes into play.
Traders' Sentiment
SWFX traders remain long on the pair, as 55% of open positions are long. Meanwhile, 60% of set up orders are to sell the Euro.
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