The euro has been quiet so far in Asian trading, stuck in a range between 1.3378-1.3395.
- Bids at Friday’s low of 1.3334, more at 1.3300 and just below. Better demand at 1.3285/80 with stops below
- Offers at Friday’s high of 1.3410, stretching to 1.3420 (good size). A mix of buy stops and offers up to the 6-month high at 1.3452
Technically, EUR/USD wasn’t able to take advantage of the break of the June high of 1.3416 but the fall back after the breakout was hardly a rejection. Every time the euro begins to struggle it finds new life, making it very difficult to bet against.
One factor slightly working against longs is the positioning data from the CFTC. It shows us that euro longs are suddenly en vogue, meaning the short-squeeze rallies of the past are probably over. At times, when sentiment on the euro shifts to neutral, it’s time to go the other way.
