Maybe. EUR/USD has fallen 3 standard deviations from its 10-day moving average, a veteran market watcher tells me. That’s a move that is seldom sustained for long.
I would not fade the fall and try getting long (the equivalent of trying to catch the proverbial falling knife). but partially covering shorts ahead of the key support zone between 1.4670 and 1.4700 looks prudent. If those levels give way on a sustained (closing) basis, its still look out below.
Resistance is up at 1.4755/60 near-term. A move above probably signals the downside pressure is off for the very near-term.EUR/USD trades now at 1.4723.
