- HSBC (based on Bloomberg)
EUR/USD's surge by more than 300 points was hardly predictable yesterday, even though the ECB unveiled more support for economy. Daily growth of the Euro was the sharpest since 2009, while trading volumes spiked to reach 5-month high. The pair is managing to hold gains until the moment of writing on Friday. Both monthly PP and R1 were immediately eroded, supporting additional gains in the near term. However, EUR/USD will inevitably meet 55, 100 and 200-day SMAs in the range of 1.0996/1.1061. According to weekly technical indicators, a correction can start very soon.
The portion of SWFX positions accounts for 48% today, no change on a daily basis. Meanwhile, pending orders have become more in both 50 and 100-pip ranges from the spot price.