EUR/USD: Starting to exhibit some signs of strength
- Heavy protection of 1.3400 barrier was eventually chewed through and quiet consolidation at that level is now a bullish sign.
- Demand on the crosses also returned with more heavy EUR/AUD buying reported. EUR/GBP was another of the crosses to make a break up out of its recent consolidation range.
- The market is still overwhelmingly bearish on the EUR and whilst shorts have been reduced, the market is definitely not long.
Overnight flows seem to suggest that the path of least resistance for the EUR/USD is higher and buying intraday dips towards hourly trendline support at 1.3350 would seem to make sense.