My view from yesterday, that 1.3380/1.3420 is the pivotal area, remains and we had further evidence overnight that even extremely bearish developments aren’t enough to drive the market lower, if the market is overwhelmingly short already.
I’d look to play the 1.3420/1.3575ish range for the next few sessions and a lot will depend on where the pair is come Friday morning. If we’re near the range bottom then the bears will have a serious go at pushing it lower. If we’re above 1.3600, then we can expect serious short-covering. Could be one for the break traders here.
