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Forex pairs in this Article » EUR/USD (Barcelona) - One of the main developments since Friday has been the confirmation that market speculators are getting increasingly long Euros, with the latest reading showing Euro spec's having increased their position to 36,746, just 1200 contracts short a 12 month high.

Is EUR/USD rally sustainable?

The upbeat Eurozone PMI, along with GDP data and a chatter of a more hawkish ECB may have bolstered allure towards EUR/USD longs, however, at 36,746 contracts, as noted by Sonali Desai and Rick Lloyd from IFR Markets, "IMM EUR/USD longs are near their Feb 5 peak of 37,952, the week in which the pair topped out above 1.3700 - positioning has been mostly short since and the last time longs crossed the 40k mark was in July 2011."

Desai and Lloyd add: "With weekend press reports suggesting Greece might need a further EUR10 bln in funding next year and Bundesbank chief Weidmann downplaying suggestions of any change in the ECB's rate stance, EUR/USD bulls might want to think twice before leaping in at current levels."
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