No enthusiastic selling even when the euro falls below support
Technically, the euro looks very soft on the intraday chart. It fell below 1.1340, which had been a solid layer of support three times over the past two days.
On the break, all it could muster was a 16 pip fall.
EURUSD intraday
On top of it all, the euro is wrapping up a fifth consecutive week of gains. In a normal market, that would a sign to take some profits.
But the euro isn't a normal market.
It's an extremely one-sided market crowded with shorts. So when prices dip, there is virtually no one to squeeze. Instead, shorts are using it to cover and downside momentum is halted almost immediately.
For the remainder of the day, keep a close eye on Bund and Treasury yields, both are moderately lower and further declines could lightly weigh on the euro.
