EUR/USD nears the lows and closes in on 1.1800 again
The dollar momentum may be pausing for breath now but it could quickly resume at an accelerated pace if EUR/USD breaks below the 1.1800 level.
Buyers have so far put on a solid defense at the level but nerves are building as sellers continue to push the agenda. The low today hit 1.1804 and we are near there again.
Large expiries are lined up at the figure level and the reluctance that buyers are showing to allow price action to touch that suggests that barriers are in play too.
That highlights the likelihood of larger stops lined up just below that so if sellers can make a play and break below the figure level, expect the run to intensify.
As such, that may feed into broader dollar strength across the board and may signal more risk averse tones across other asset classes ahead of the weekend.
