Sept 22 (Reuters) - EUR/USD traders are reacting prudently to a rise-averse situation by taking profit. This is crucial and should result in a continuation of the uptrend .
Traders had profits. They have booked some of them and they have done this in orderly and considered fashion. Profitable trades are usually repeated. When risk aversion abates, it's likely EUR/USD traders will buy again.
The size of bets on a rally had surged, a sure sign that there would be a correction . It has taken weeks to unfold and the dip is yet to reach the minimum objective for a technical correction from the rise from June's 1.1168 low which is 1.1691.
Traders may buy there or perhaps await a move to correct the rise from 2020's low at 1.0636. To do that, EUR/USD must drop to 1.1479. An opportune level to buy may be the base of the daily Ichimoku cloud at 1.1567.
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(Jeremy Boulton is a Reuters market analyst. The views expressed are his own)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.