Traders report that a “cavalcade” of Asian regional central banks are buying EUR/USD on the recent pullback. They seem to be protecting the technical support at 1.3980/90 to keep the market from completely rolling over.
Expect quiet, thin markets for the balance of the session as traders try and preserve capital ahead of month-end. Low liquidity could make markets more volatile as usual, so be forewarned.
Stops remain in the 1.3970/75 area, traders report, while offers are seen toward 1.4050/55 and 1.4080/85 near-term.
