The EUR market has been positioned neutrally over the last few months and has been anxiously waiting for a breakout in either direction. The bearish breakout happened in early September when most of the big players were returning from their summer vacations, and with no Sovereign buyers to soak up the excess, we are witnessing some heavy falls. There is little or no strong technical support and more losses look likely over the coming weeks.
If in doubt, reduce positional risk.
Next support is around 1.3425 and resistance is at 1.3825 so I’d look to play the edges of this range in coming days.
