EUR/USD has recently been behaving stubbornly with good reason. However, as we mentioned last week, the levels in this forex pair are a bit too far up for buyers.
So we have seen some two-way business in the last few days, which means that buyers are hesitating to push higher, while sellers are trying to step in. The sell forex signal in this pair that we opened yesterday, closed this morning in profit.
So, the buyers and the sellers have been trying to make up their mind over the last several trading session, but it looks like EUR/USD made its mind up for them and it happened pretty quickly.
I see there’s nothing on the economic calendar to back this move up, so where’s the catch?
Well, the ECB (European Central Bank) meeting is scheduled for tomorrow and it looks like the forex market is getting nervous.
I don’t expect anything particularly dovish or hawkish tomorrow, despite softer inflation. But, we know that EUR/USD longs are a crowded trade at the moment, at least the short term/medium term trades, hence the 10 cent climb since January.
So, I suppose the buyers are taking some profit and closing some of their positions, just in case. Well, I’m glad we were on the right side of that trade with our short term forex signal. We also have a long term EUR/USD signal, but that’s another story.
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