Since the breakout of the converging lines on 9 May the pair took off just to post just under a 400 pip gain.
The move took us over the 200 wma and this is where the drop has been caught, at 0.9630. This will again be the first place to look at for building a base.
Down from here is the 38.2 fib from the May lo/hi at 0.9612. Support is seen at 0.9605 with stronger at 0.9575. Much like the 55 ma in the euro we’ve spiked below the 55 H4ma here but are back above again.
I may seem to be banging on about it, but don’t get dragged into these moves too easily. It could well be a normal shake out or the start of a bigger correction. If you do jump in keep thins tight and manageable.
All markets need a clearout now and again before continuing their path.