EUR/USD’s rally stalled at the 1.3383, not too far from the 100 day moving average, a level which EUR/USD has struggled to maintain on previous rallies.
Earlier comments from the German FDP that it sees a larger euro rescue package as neither suitable or necessary has helped cool the rally, as has sovereign selling into strength. There was plenty of buying by sovereigns earlier in the week below 1.3000 so it should not be a surprise that they book some quick profits.1.3300 is now support on dips in EUR/USD, the trendline off the 1.4280 highs from November, broken earlier today.
