Euro retreats 60 pips after hitting 1.1296
Mike highlighted offers ahead of 1.1300 in the euro today and a few pushes toward the big figure held. In the hours since, the euro has drifted back to 1.1230.
What was once a big daily gain for the euro has faded back to a 'modest gain'.
I like the downside here. The talk of more ECB QE scuttled some shorts after a quick decline over the past few days but I don't think the euro needs Draghi's help to decline. In addition, I think the washout in risk trades is probably coming to an end and that will push up Treasury yields more than Bunds.
Technical analysis
Technically, today's high landed right in the 50% to 61.8% retracement 'box', which is a standard bounce after a three day decline in the euro.
I target a retest of the 1.11 zone and will sell more on a break of 1.1085.
