With a still packed USD sensitive economic calendar tonight featuring a hugely anticipated NFP release, lets just say that things may get a lot worse for squeezed Euro shorts before they get better…
With EUR/USD still really in no-man’s land on the daily chart, I have thrown on the fibs to try and give us some possible areas of logical selling. I have marked the key 50-61.8% zone which also lines up with the underside of our counter trend, flag trend line.
With the market expecting a decent NFP number after this week’s ADP beat, if the US economy doesn’t deliver then an instant shot into that area is a real possibility.