With momentum carrying EUR/USD higher, options players carried the baton over the finish line, taking EUR/USD to 1.2403, just far enough to trigger a barrier option.
Looks like the buying has stalled for the time being but few are willing to try and stand in front of a freight train, especially as the next station is not until up at 1.2460/65.
As Sean like to say, trade the edges…
We have nearly an hour to wait until ISM. The market is loaded for bear, so lingering shorts in EUR/USD could cover if the data is better than expected. Economists forecast a slight dip to 59.0 from 59.7 last month.
