Dealers report continued interest to buy the dips in EUR/USD this morning and placing tight stops in the 1.4840 area. It is the no-brainer trade. Seems like only a matter of time before some algo goes and stops everyone out before rebounding. If looking to buy a dip, keep your powder dry until the stops are tripped. EUR/USD trades at 1.4871.
We’d be reluctant to buy any dip ahead of the weekend as my favorite technical pattern could play out: the double top.
We’ve stalled twice at 1.4969 with the intervening bottom between the two peaks at 1.4844. A break of that level should translate into a measured move decline to 1.4722, if the text book is right.
