German IFO data comes in much stronger than expected at 109.3 vs expected 107.6. Euro's immediate reaction pulled it higher on the good news, quickly countered with some massive wallets looking to sell into the pullback. The first “gap” (heavy-racing activity with zero retrace) is open at around 1.3343 down to 1.3338, and would stabilize the pair intraday. The more severe/undesired “gap” was just filled into 1.3324.
Short term, the first gap / objective is completed…..the higher will remain questionable and we'll better gauge as the day unfolds.
Euro plopped into the 1.3286 range to retrace, our first support level visible on the chart posted earlier today.
Sellers have been lining up all morning, dumping risk ahead of the U.S. break.