EUR/USD has pretty much been a a waste of time during the US session, trading a tight 40 pip range. Were edging back toward the top of the range late in the session with support from the reflation trade. EUR/USD trades now at 1.3927.
Stocks are heading into the close near their session highs, oil’s up almost $2 and gold looks like it has put in a short-term bottom; all this is prompting a fraction of the EUR shorts to begin covering positions. It’s to early to say that EUR/USD is doing anything more than just consolidating an oversold condition.
A break through hourly downtrend resistance around the 1.3975/80 are would suggest a near-term bottom is in place.
