Demand Stays Strong As EUR/USD Reaches New Highs
Admirals | Jan 31, 2013 06:13AM ET
Wednesday was another good day for bulls concerning EURUSD. They controlled trading from the very beginning. In the morning, they managed to break the resistance at 1.35 and used it as a support for a further upswing. During the day, they also managed to set new tops, slightly below the psychologically important level of 1.36, at 1.3587. Buyers keep the situation under control and still we do not have any evidence that could support a bearish scenario. When checking the sentiment on EURUSD, we can see that most traders anticipate the bearish correction and they try to find good spots for opening short positions. When studying the chart, it is hard to support this view, at least for now. The correction movement will happen sooner or later but before opening short positions we should at least look for a trend reversal price pattern or a major candlestick formation. Without that, the most likely scenario can be described by saying: ‘Only the sky is the limit’.
Yesterday’s trading gave us chances to spot some minor supports, that can be later used as good levels for opening long positions. They are: 1.3535 and 1.35.
The closest resistance for Thursday morning is 1.3560 – yesterday’s support that was broken early in the morning. If bulls will decide to continue the Euro appreciation, this levels might not hold for a long time as it is not a major level that traders should consider important.
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