Euro catches a late bid as it tries to form a base

Euro higher after two days of declines

I was beginning to worry that the euro bulls had gone on vacation.

A late bid has helped the euro turn a quiet day into a small victory. EUR/USD is at a session high, up 28 pips to 1.1161. Tuesday's high of 1.1165 is the nearby level to watch.

Earlier in the month there was a constant drumbeat of buy-the-dips commentary and that helped to support EUR/USD but once the Fed took a hawkish turn, they began to have second thoughts.

But today's bid is an early sign that after six days the FOMC optimism isn't enough to keep the dollar going.

There is now a minor series of higher lows that started yesterday. They began after a test of the May low held. Zooming out, there's still a great technical case to buy the euro and it really is looking like buy-the-dips was/is the trade.