EUR/USD takes out 100-day moving average, a bullish sign

With the Euro's swift move in the past few days following Italy's elections, traders jumping into the market, especially those placing bets with low conviction, are likely opting for tight stop-loss orders, says Steven Englander of Citigroup. "If you've gone short or long with low conviction, you keep a tight stop," he says. That can lead to some whipsaw movements in the market. The euro bounds higher and breaks to a session high Wednesday afternoon as it takes out its 100-day moving average of $1.3126. The euro was most recently at $1.3130, according to EBS via CQG. A clear break and hold above that 100-day moving average for the rest of the day could be a signal of a near-term rebound for the euro. EUR/USD up about 0.5% on day; EUR/JPY motors even further, up 0.85%.