EURUSD price action on Wednesday was similar to Tuesday's with a squeeze higher in EURUSD in the afternoon. The sharp move seemed driven by short-term position adjustments once again and it seemed a large time-related order went through the market. There was a continuation of the grind higher during the Asian hours.
The price action of the past two days suggests the market is nervous ahead of Jackson Hole. Investors do not want to miss taking profit but are eager to add as soon downward momentum kicks in.
I expect the next 24 hours to remain choppy. 1.0080 is the pivot to watch on the upside. The desk recommends fading moves towards that level and re-evaluating on a move back above 1.0120.
EURUSD levels:
Supports .9960, .9900, .9860
Resistances 1.0035, 1.0080, 1.0120
- UBS Strategy
Comments