EUR, GBP still looking quite strong
- Any big move higher in EUR is likely to be driven by equity-manager flows according to bank research that I’ve read;
- Very important EUR/USD resistance levels remain near 1.3425 but with stop-loss buy orders likely above there, this level is a red-rag to a bull;
- On the crosses, EUR/GBP looks heavy whilst below .8600, EUR/CHF is in a 1.2250/1.2450 holding pattern and EUR/JPY is proving resilient near 130.00;
- The GBP is still heavily oversold on a long-term perspective against most other majors and I still believe that the overwhelming bearish sentiment (at the wrong levels) will lead to a significant GBP rally, especially against the USD.