EUR/USD is close to crucial but strong supports at 1.10 and 1.0850.
Traders can gamble on an end to the downtrend inspired by risk aversion, rising volatility and a narrowing of the interest rate gap.
Markets are growing increasingly risk averse, and the flash crash for Turkey's lira and another collapse for Argentina' peso are warning signs for other popular emerging-market pairs.
After the 20.00 break Mexican peso longs look like an accident waiting to happen and ZAR is poised to break below big levels.
U.S. bonds are sending a recession warning that the Federal Reserve is likely to heed.
Precautionary easing would close the gap with the European Central Bank, which may be a spent force after September.
EUR/USD vols have been so low for so long that the upside is probably poorly hedged.
It would be easy for truly risk-averse conditions to spark a rapid vol rise, boosting demand for safer assets, including euro.
US stocks, yields.
EUR/USD and option vol Click here