Short-Covering Rally May Push EUR USD Through 1.4447

Short-Covering Rally May Push EUR USD Through 1.4447

The Euro is trading slightly better at the midsession following anearly morning sell-off.  Today’s trading action is inside of Monday’swide range but near the high for the week.

Intraday Analysis

EUR USD

The Euro is trading slightly better at the midsession following an early morning sell-off.  Today’s trading action is inside of Monday’s wide range but near the high for the week. 

The early break during the U.S. session was triggered by a sell-off in the equity markets, but the inability to do significant damage to the stock market ignited a short-covering rally in the EUR USD.

The high for the week at 1.4447 is still holding as resistance but may be taken out if equities continue to strengthen throughout the day.  The trading action doesn’t look like fresh buying but rather short-covering. 

Traders may get a little hesitant about adding to current long positions ahead of the August 6th European Central Bank meeting so even a breakout through 1.4447 may show limited gains.