EUR/USD bets have proved decisive, weighing on the rally, influencing the extent of correction and the resumption of the uptrend.
The number of remaining longs can now allow for that trend to reach new heights.
EUR/USD soared from 1.0636 in March 2020 to 1.2014 in September, at which point a record long position slowed the rise.
It took four more months to reach 1.2349 in January.
Long liquidation became the dominant driver thereafter, pushing EUR/USD to 1.1704 last week, from where EUR/USD rallied, reaching 1.1881 EBS today.
EUR/USD rallied because the number of longs had been slashed by two-thirds from August's record by Tuesday last week.
At $10 billion, longs no longer represent a big braking force.
Having met the minimum objective to correct its long-term rise at 1.1695, EUR/USD has jumped.
When traders were last similarly positioned, EUR/USD rocketed after closing over the 200-day moving average in May 2020.
The 200-day moving average is 5 pips above today's high. nL1N2M009E
For more click on FXBUZ