With some overnight strength coming back into the USD, the EUR/USD fell away as did most of the majors. I’ve been watching the Euro closely and if you look at the 240-min chart you can see that we’re really bouncing hard off the 50 and 200 SMAs. Right now we are at the 50 SMA. I suspect that might lead us to bounce a little bit in the next hour or so, right up until European traders enter for the day.

If we can break below 1.1775, then I’ll be looking to be short into 1.1700. However, in the short-term, I think we can bounce off the 50 SMA so that might be a potential long trade for those aggressive traders out there. However, I don’t see a big jump to the upside that’s for sure.

EUR/USD – 240 min Chart.