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19 Feb 2014
Flash: EUR BPI like a sailboat in a gentle breeze - FXStreet
FXStreet (Barcelona) - Goncalo Moreira CMT, FXStreet Technical Analyst notes that the potential of the EUR to remain constructive, reported one week ago, is now visible in the index's graceful upward trajectory. It climbed for 3 weeks to reach 73% on yesterday's close.
Key Quotes
“The other bullish percentage index remaining well above the 50% is the eye-catcher GBP hitting the 100% on Thursday and Friday. It dropped back to 80%, which means the GBP is still performing positively against 80% of a basket of world currencies. This indicator reading would translate into more bullish price action as long as it stays above 70% but recommended here is a caution on long positions with a quick exit in place.”
“The USD did a soft landing just around the 15% levels, and although the sentiment portrait is negative, it is not an extreme bearish omen. The index could resolve higher and challenge the 50% this week. As part of a consolidation of the recent moves in the majors, we could see a convergence towards the centre line in the next days, before the prevailing trend continue.”
“The JPY recovered some strength coming out of the 10% threshold, surpassed the USD BPI index, but could stage that same consolidative performance in the next sessions encroaching on the 50%. It would need to hurdle that level and then the 70% to become a strong spell in the days or weeks to come.”
Key Quotes
“The other bullish percentage index remaining well above the 50% is the eye-catcher GBP hitting the 100% on Thursday and Friday. It dropped back to 80%, which means the GBP is still performing positively against 80% of a basket of world currencies. This indicator reading would translate into more bullish price action as long as it stays above 70% but recommended here is a caution on long positions with a quick exit in place.”
“The USD did a soft landing just around the 15% levels, and although the sentiment portrait is negative, it is not an extreme bearish omen. The index could resolve higher and challenge the 50% this week. As part of a consolidation of the recent moves in the majors, we could see a convergence towards the centre line in the next days, before the prevailing trend continue.”
“The JPY recovered some strength coming out of the 10% threshold, surpassed the USD BPI index, but could stage that same consolidative performance in the next sessions encroaching on the 50%. It would need to hurdle that level and then the 70% to become a strong spell in the days or weeks to come.”