EUR/USD reaches new highs

Selling pressure provided by the 200 day SMA at 1.2807 was unable to contain the pair for long and allowed EUR/USD to surge up to resistance at 1.2864/1.2907, which also might take several attempts to be breached before advancement is continued. However, it is worthy to notice that means of major bank's forecasts for the next quarters (1.2257; 1.2245; 1.2337) are considerably below the spot and suggest that the current rally will not survive during the next three months.

The gap between short and long positions has widened once again, as the share of bearish traders has increased up to 60%, meaning market participants are becoming increasingly convinced that EUR/USD is going to maintain its current upward course at least for now.