EUR/USD is about to retrace half the losses it sustained during the US morning. Prices slumped through Friday’s low at 1.3515 , triggering stops and prompting some to jump into short positions. That worked for a few minutes but the upbeat US existing home sales data sent stocks soaring and prompted new EUR/USD shorts to square up. The resumed rally has some of those who were shaken out earlier in the day biting the bullet and jumping back in to establish longs.
I’ll stand by my earlier call: The easy money in this EUR/USD rally has already been made. We have more of a two-way street to contend with today and going forward, it appears.
1.3610 is 50% of 1.3733/1.3586.
