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EUR/USD reclaims 1.09 today

The rebound in the dollar yesterday pushed the EUR/USD back to its lowest levels of the week so far. As with the GBP/USD, the low on the day came into the 4pm London fix. The Euro fell to 1.0852 and in the process, took out any support at 1.0862. So, as you can see, it did not extend the move through 1.0862 by very much at all, but that is a clear indication that this was all about stops and removal of long Euro positions in place just below that technical level. This is what so often happens and I have mentioned this repeatedly in the past. If the drive, in any direction is all about stop loss flow and not real money flow, then very often the move will come to an end once the stops are taken out. Also big players in the know will use that information (if they have it) to step back into the market and push it back the other way, once the stops are out. That appears to be what happened yesterday and perhaps confirmed by the price action since. So, now the EUR/USD is back above 1.09 again, where to next? To be honest and given where we are in the calendar right now I would say sideways inside a clearly defined 1.0860-1.0960 range, give or take a pip or two. The EURUSD is just now trading at 1.0910
 

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