For the fourth consecutive day, direction for investor sentiment changed yet again Wednesday. This time Tuesday’s decline was entirely overturned and EURUSD was bought at the most positive levels for 16-weeks. Although the highs were not maintained and some consolidation has been seen in Asia, we look for dips/profit taking to be limited and temporary. In view of this, our call is bullish above 1.3820. The immediate objective is 1.3893, yesterday's top, with a move beyond that point targeting 1.3923 or even 1.3967.
Selling through 1.3820, half of yesterday's net gains, is the risk to this call as it signals a stalling, and reversal, of demand. The market should then decline to 1.3778, yesterday's open, or even the day’s low at 1.3743.
No comments:
Post a Comment