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We did this last week. Squeeze play on.
The EURUSD has that squeeze feeling.
Since NY traders entered, it has been trading as if trader are offsides. Coming off the much better than expected US employment report and little progress on Greece, the stories were there to go lower, but the price action has said otherwise. That is the making of a squeeze and that is what we are seeing. If it seems familiar, reference last week when Tuesday, Wednesday and part of Thursday saw similar action.
The pair triggered another round of stops above the 50% retracement level at 1.1213 and quickly squeezed up to 1.1225. The price has quickly retreated back to the 1.1200 area. The 100 hour MA at 1.1187 should be support if it can be tested (blue line in the chart above). Traders who are short and feeling uneasy may be trying to get the average price down by selling above, but watch those support levels below. Squeezes can be relentless and traders that average in a rising market are hoping the stories overtake the price action. If it cannot, it can hurt.