A wave of sales in USD/JPY knocked the price down to 102.14 a moment ago and there’s been the same going on in EUR/USD.
The 1.3335 level is showing itself as a fairly strong level of support. Still the upside is hard work, as I mentioned yesterday, and it looks like 1.3335-1.3385/400 does you for an intraday range once again.
EUR/USD H4 chart 12 08 2014
Mike mentioned the possible option influence and after the move above 1.3400 last Friday after the cut we shouldn’t rule out a similar event today if we’re around the levels a bit later. One thing that leans towards seeing some options related moves is that the heat map is showing a big lack of trading volumes in both pairs today. That may open the door for smaller than usual trade sizes swinging the market far greater than usual.
Reuters heat map 12 08 2014
I don’t hold to option moves too much as they are never reliable. Sometimes they have an effect and sometimes they don’t.
Update: Just a bit of market scuttlebut had Asian reserve managers selling this morning around 1.3365/70 so keep that in mind if we break through 1.3350. If we see resistance coming in around there you’ll know they’re still about.