EUR/USD disappointment hits longs as US players step in

The EUR/USD has now fallen below the 1.0950 handle and that has seemed to trip stops. The drop comes as the DAX gives back all of its earlier gains and now slips into the red. I am sure that there are quite a few institutional players looking at the price action in both and feeling a little concerned. Well, the lack of traction in the Euro has its roots in the weak PMI data seen earlier today and perhaps it is the same for the DAX. To be honest with you though, I was surprised to see the DAX trade as high as it did earlier, given the major reversal and lower close last night. Perhaps I can only blame that on the US equity futures and closing levels. So, no matter the surprise from the Fed this week, the Euro has not been able to really take full advantage of that yet and it could do with some weak US data this afternoon. Right now, if the opposite emerges, then further disappointment from Euro longs could easily be seen. We shall just have to wait and see what the US data has in store I guess. The EUR/USD is currently trading at 1.0945