Twice during the US session prices have stalled ahead of the 1.3900 level. Reports have circulated that a US investment bank that was a major buyer at higher levels last week is offloading longs on strength today. They’ve also bought 1.3800, 1.3600 and 1.3400 puts, expiring tomorrow, next Tuesday and July 8, respectively.
Looks like we could sit 1.3800/1.3900 for the balance of the day and potentially build a right shoulder on the daily charts in EUR/USD. A break of the neckline at 1.3800 would open the way to 1.3250, assuming we get a consolidation over the next few days around present levels. We trade now at 1.3873.
