If you are a EUR/USD bear, then it might be a good time to take a few days off. There have been some big flows over the last 2 days and there is more to come. One player who has been very close to the action in recent days tells me that the short-covering has been frenetic and that there are more massive stops above 1.3410, 1.3440 and 1.3500. He says that if the present trend continues, we could be at 1.40 by the end of next week.
Certainly hard to imagine that but as we know once the market gets started in a particular direction with some momentum, it can be difficult to stop. Or as Jamie would say, the market can stay illogical longer than I can stay solvent.
