EUR Trading Outlook
EUR/USD opened in Asia at 1.3593 after selling off across the board overnight. Reserve managers sold EUR/USD straight while funds sold EUR against selective EM currencies and AUD. Despite these flows overnight, EUR/USD and the EUR complex remained moribund in Asia as has been the case recently. EUR/USD could only manage a 1.3588-94 range. Option gamma plays again helped to hem in any price action with large expirations again at 1.3600 and more above and below. Surprisingly resilient post-ECB ease last Thursday, the EUR complex is beginning to look a bit more vulnerable on diverging central bank expectations. Support is eyed at 1.3570 (61.8% Fibo retracement of 1.3503-1.3677) but stops are building below. A break back above 1.3625 is needed to ease current downward pressures.
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