Contrary to this week's bullish call for EURUSD sentiment, 2 days of gains stalled yesterday as investors took some profits. Net losses were not extensive though – less than half of Friday’s net gains reversed – and demand for EURUSD has re-emerged in Asian trading.
Immediate signals are not strong but are positive and in view of this our call is Cautiously Bullish above 1.4555. The immediate objective is 1.4630 with a move beyond that point targeting 1.4659, yesterday's top, then 1.4682.
Selling through 1.4555, yesterday's low, is the risk to this call as it signals that selling pressure is greater than currently assessed. The market should then decline to 1.4517 then 1.4451, Friday’s bottom.
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