"The dollar's weakness looks like a correction in its multi-year bull trend given the Fed is still more likely than other major central banks to tighten rather than ease monetary policy this year." - Royal Bank of Scotland (based on Bloomberg)
Pair's Outlook Poor services data from the US hit the Dollar on Wednesday. EUR/USD touched the highest level since October, while crossing several crucial resistances. Those included 100 and 200-day SMAs at 1.0958/1.1052. Additionally, it erased Dec-Jan and Aug-Oct downtrends. The pair should trade above 200-day SMA on Thursday in order to confirm medium-term bullish expectations. The key short-term supply is also represented by weekly R3/monthly R2 at 1.1115. Success here will push odds in favour of a spike to monthly R3 at 1.1246 and Sep 2015 high at 1.1460 in the long-term.
Traders' Sentiment The portion of long positions went up to 45% (41% yesterday). On top of that, 60% of all pending orders are presently set to buy the 19-nation currency in a 100-pip range from the spot.