EUR/USD/Flows and Orders

EUR/USD: Barrier pops but no volatile follow-through as corp sellers await

Relatively small barrier at 1.2900 has been consigned to history but there has been no volatile break above, with corporate sellers sitting in wait near 1.2910. If bearish, wait until the bulls get their fill and then sell into the exhaustive rally. If bullish, hang tight and see what happens.

  1. Sean. I have somewhat philosophical questions: Does action during US hours qualifies as volatile follow-through? And how one could anticipate such a lovely move. Looking back I can find a dozen writings on the wall, but in reality I did not see it coming. 100 pips move pretty much straight up from reasonably overbought condition are not terribly common. I am a bit puzzled at the moment, because I feel that recent rally is a bit too strong for simple short covering squeeze. In a sense it could advocate bullish bias for risk in coming week. I was thinking about selling it, but now have my doubts.

  2. Eur-usd continue its bullish run from July after correction to 38% fibo.

    Buy breakout at 1.3000 or re-test support at 1.2850-1.2800 zone.

    Upside target at 1.3170, then, 1.3480, then 1.4300 (big triangle top line) in next 2-3 months.

    What was the fundamental reasons of euro turn up in July seem not very clear, but, this drive force may still exist there. Unknown force always be extremely powerful, fearful.

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