Markets are expected to be thin through the day, and this could be the opportunity to push EUR/USD through the 1.0500 levels as many have been anticipating. Through here brings us to the 2015 lows at 1.0450-56, but either side of these 2 levels, there will be some significant demand lying in wait, despite the weight of USD buying interest which shows little sign of abating.
EUR/USD 1HR Chart
EUR ‘value’ buyers may get a glimmer of hope from US yields coming up against some key levels – as mentioned a little earlier – but as we saw yesterday, the current market seems immune to oversold/overbought levels at present. Even so, the threat of a short squeeze is ever present, with 1.0650-60+ carrying large stop loss orders.