EUR/USD: Bears starting to lose some momentum
The bears have been in total command in EUR/USD over recent weeks but it seems to me that the clever money has been short since 1.35 and is booking profit whilst the late-to-party desperadoes are selling in hope rather than with conviction.
With EUR/GBP and EUR/AUD starting to put up a fight against the ‘inevitable’ decline, EUR/USD might be one of the more susceptible pairs to a retracement. If it breaks back above 1.30 then we are likely to see some very heavy trailing stops kick in.
I’m always uncomfortable buying breaks but this pair might give a good risk-reward play, because if 1.30 breaks then we will likely see 1.3150 very quickly.