EUR/USD meets December downtrend after 150-pip rally

Risk-off sentiment, which is currently driving FX and other markets, pushed the Euro considerably to the north against the Greenback on Thursday. Helped by rising trading volume, EUR/USD eroded all nearest resistances and finished the US session just under the monthly downtrend at 1.0930. Following these gains, which were the strongest since early December (post-ECB rally) we expect a bearish correction today. Positive US NFP could provide another momentum to the Dollar, which will move the pair towards a dense technical cluster at 1.08. 

The bullish portion of SWFX open positions increased from 41% to 44% and bounced off the 12-week low, while 100-pip long pending orders are now enjoying a minimal majority of 51%.