EUR/USD managed to rally through important resistance at 1.4770/90 overnight and up to 1.4805 or so as shorts logically covered. having rallied just far enough to make the playing field a bit more even, stories like this began to take hold. Stocks in Asia did better and several Asian central banks intervened to buy their local currencies for dollars, dollars they will likely buy back (if they have not already) against the euro.
So here we are, at 1.4720, with the market Jess short than before. Should commodities resume their slide and US stocks catch a bid, the downside may open up for EUR/USD with fewer players in the trade.
Update: Mixed Asian intervention…
