EUR/USD crumbled in early Sydney trade. The pair closed in NY at 1.3294 and after drifting down to 1.3265 a large German bank hammered the bids taking the stops out just below 1.3250. No one got a chance to cover and when the pair paused briefly at 1.3220, other major players sold in size with EUR/USD hitting 1.3201 (just ahead of reported option barrier at 1.32 even) . Once the selling had been done the pair consolidated in a tight range, mostly in the 1.3220s. Guess what – we are still there some 8 hours later.

Traders say big stops lie just below 1.3200 but we need to knock out the option protection first. Given the reaction to bearish Greece news in this session, that shouldn’t atke too much longer!