After yesterday's strong euro rally we've seen Europe in selling mode so far
What doesn't keep going up, or has gone up too fast, is invariably going to come back down and that's certainly been the case this morning.
In my ECB review I said:
" Yes the moves were extreme to the top side ( I certainly didn't see that much of a rally) and may well be overdone in the short term. We'll find out a bit more today."
Well the market has spoken and EURUSD is now down to 1.1084 after chewing through 1.1100 support but there are bids reported between 1.1060-80 as per the order board with talk of the retail market keen to limit the damage from yesterday's extended gains. My hunch would be it's not just the retail side keen to take advantage of such a decent retreat and we can expect demand all the way into 1.1050 and more into 1.1000.
Large option expiries again today also suggesting good dip-demand .
EURGBP has needed little excuse to retrace but has found fresh support as anticipated around 0.7750. Should we break lower there's plenty of bids waiting between 0.7700-20
Currently 1.1087 and 0.7753