Same old song and dance…EUR/USD breaks a level, rallies, runs into options-related sales ahead of a barrier option at the next round number. Rinse, repeat.
We’re doing that usual this morning as we run into selling ahead of the 1.3100 level. We’ve reached 1.3093 so far.
If that level is overcome, 1.3125 is the 38.2% retracement of the decline from 1.5145 high late last fall. Stops from leveraged accounts are bunched up in the 1.3145/50 area, traders report.
1.3045/50 is support on pullbacks near-term.