EUR/USD will likely trade close to 1.3350 in the run up to the New York options cut with expiries and a new barrier options rumored at that rate. Prices have flirted with that level before stalling. Dealers are still a bit shell-shocked after this morning's abrupt central-bank inspired U-turn.
The aggressive nature of the buying, particularly by an Asian name, was the most surprising factor this morning as they chased the market higher, rather than sitting on a bid, as is the usual modus operandi. 1.3365/70 is the near-term topside objective with stops seen just above. Offers are eyed toward 1.3400, where barriers are struck. EUR/US trades at 1.3342 ahead of Michigan sentiment.
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