Citi techs cut their EUR/USD short position overnight and Goldmans recommended buying at current levels. I think that they have two main reasons for buying now; the option protection at 1.4500 which is very large (and remember that China is a much more willing buyer of EUR/USD than a seller, as they wish to diversify out of USD, and therefore are more likely to heavily defend the downside of a double-dnt structure than the topside); and the prospect of very large Sovereign bids between 1.4460/80.
This pair has already fallen 650 pips from its 1.5140 highs so I don’t think it’s wise to be selling at these low levels and my experience tells me that the big players are often right. If you’re bullish, keep stops below 1.4450 (along with half the planet!!) and if you’re bearish, wait a bit and sell rallies or the 1.4450 break. That’s my reading at least.
