As we repeatedly warned yesterday, EUR/USD has no difficulty penetrating the 100-day moving average from below but it does have a difficult time sustaining gains above that level for very long.
Traders reported selling of EUR/USD from several Asian central banks above the 1.3420 level earlier today, Taiwan among the more high profile sellers…
In addition to the Morgan Stanley sell recommendation, we also hear that a big German bank was a very heavy buyer of 1.3200 EUR/USD puts this morning.
1.3320/25 is good support on dips near-term with more at 1.3282, the trendline broken yesterday during our frantic rally.
If nothing else, it now looks like we have re-established two way traffic after a one-way flow for the prior two sessions.
