• Oil has plunged almost $28 per barrel supporting EUR/USD

• Unlikely oil factored by traders due to speed of drop

• Euro short grew to $22 billion last week, biggest since 2015

• The plunge in oil prices should fuel short covering

• A squeeze (unwind of distressed bets) less certain

• Over 1.1336 - 38.2% Aug-Oct drop would heighten risk squeeze

• The yuan may be at heart of future FX moves

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EURUSD

(Jeremy Boulton is a Reuters market analyst. The views expressed are his own)