EUR/USD: Anyone else smell a short market?
Maybe I’m reading too much into this, and I probably am as I don’t trade it very much, but the viciousness of yesterday’s short-covering rally tells me that this market was caught short and wrong. Certainly we’ve seen a pull-back since then towards 1.3000 but any market which jumps 400 pips in a straight line is telling us something!
If I had to have a position today, I’d be long, and in fact I’ve bought some near 1.3095 to turn my EUR/JPY shorts into USD/JPY shorts. I would not be at all surprised to see some big ranges in coming days.