Weekly Technical Euro Forecast: Upside Potential Persists
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Technical Forecast for the Euro: Neutral
The Euro appears to be consolidating after recent upside moves; there is plenty of room in futures positioning for speculators to drive prices higher.
Net-long Euro positioning is back to its highest level since the last week of March.
Euro Rates Week in Review
The Euro has a mostly positive turn through the middle of May, even if the headline stats don’t appear so. Even though four EUR-crosses gained and three EUR-crosses fell, the bias was towards the upside: the average loss was -0.10%, while the average gain was +0.81%. If anything, it appears that the Euro is consolidating after a strong run higher against the safe havens, while volatility in global equity markets is giving traders a reason to take their foot off the pedal when it comes to the commodity currencies.
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