During the London morning EUR/US overcame key Fibonacci retracement resistance at 1.4621, the 61.8% retracement of the 1.6038/1.2329 decline. This implies a complete recover of the all the ground lost by the euro as the air came out of the commodity and currency bubble. In the near-term, the 200-day moving average at 1.4711 is helping keep a partial lid on this volcano.
Congestion between 1.4865 and 1.4980 should, should prompt some consolidation, but this is the rally from hell. As I’ve repeated ad nauseum, do not fade (sell into) a rally this strong. There are only two acceptable positions in a market like this: Long and square.
