EUR/USD slumped with relative ease this morning, sliding to 1.3937 before turning tail late in London and zooming back above the 1.4000 level. EUR/USD has recovered into the 1.4030 region, working through sell orders from grateful traders caught long on the intraday slide.
The 1.3950/1.4150 zone (give or take 20 pips) has cost the market a lot of blood and treasure in the last three sessions as the market thrashes about, searching for direction. Bulls read the price action as a consolidation while bears see a right shoulder forming on the daily charts. I see ample reason to stay on the sidelines through the weekend….
