From the FXWW Chatroom – EUR/USD headed sharply higher for a second day yesterday (+0.7 figures which is the largest daily rise since +1.0 25 Jan).
Due to the sharp move a very large divergence was formed (+2.5 st dev) even as its STFV rose slighly (+0.1 figure) instead of continuing lower along its trend.
Staying power at such large divergences has been low this year and without fresh information adding to the USD weakness carry is eventually bound to take over as main driver and guide EUR/USD lower again