EURUSD cements a top, for now at least
Signs of exhaustion in EURUSD as ECB’s Hansson’s comments fail to bring a break of the 1.2300 handle. Hansson is a known hawk so the market is factoring that in but still, these are some of the most hawksih comments we’ve had for a while.
It looks like there’s enough selling interest up here to keep the latest buyers at bay, and that’s usually a signal that a short-term top could have been put in. However, the fact that the dips are restricted to the 1.2250 level shows the buyers are sitting comfortably.
We know the ballpark now is 1.2250-1.2300 so leaning against those is still an option but with increased risk of a break each time, meaning stops should get tighter and tighter. A break either side could set the next direction but be wary of a barrier/stop/big figure fake out. There’s less possible ‘fakiness’ with a 1.2250 break.