The market still does not believe in this EUR/USD move which means we have more room to move. As Gerry mentioned below, commentators such as Ambrose in the UK Telegraph are calling for an end to the “bear rally” so there must be more to come. Nevertheless, I feel it is a prudent time to take some profit off the table.
My feeling last week was that technical resistance at 1.3590 would be broken and normally we see a spike of 50/100 pips through an important level as stop-losses are triggered. Now that this has happened, I would not be surprised to see some consolidation back towards the 200-day MA, which comes in today at 1.3445. I have booked profits on a substantial part of my long position but will hang on to some smalls, just in case.
