Technical analysts at Mizuho Corporate Bank note that the single currency is showing the biggest daily advances versus the greenback during several months.

The specialists claim that euro’s rally this week from Monday’s minimum at 1.2873 repeats last week down move like a mirror. In their view, such dynamics of the pair EUR/USD can be explained by the low trade volume at the markets.

According to Mizuho, if euro closes the week above 1.3400, bullish momentum will significantly strengthen.

The analysts advise investors opening small longs on a drop to 1.3315 but only if prepared to add to 1.3200. Stops should be placed below 1.3100.

EUR/USD may rise to 1.3500, where another short-covering round is likely.



Chart. H4 EUR/USD

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