EUR/USD were to close down here, we would close below the 10-day moving average for the first time since September 10. We are trading below the 10 day average for only the 2nd time since the rally accelerated a bit over a month ago.
Friday’s outside day key reversal has been followed up with continued sales, suggesting at a minimum a near-term top is in place. Look for sellers into rallies from trapped longs to be the theme for the next few sessions. 1.3830 and 1.3775 are key supports. 1.3920/25 is resistance near-term with more at 1.3940.
