Ella 
EUR/USD remained on the defensive after briefly breaking below 1.0900 yesterday and triggering stops below.
Yesterday’s market performance proved my thinking, as reflected in yesterday’s article, 1.0900, which has been challenged for the past few days, has indeed been breached, the increasing likelihood of this happening is the main feature of Monday.
But, aside from triggering stop-loss orders temporarily, a very bad economic agenda and a holiday mood in the August market, as expected, did not send the euro further down.
If the atmosphere of uncertainty and stress in international stock markets persists, the dollar is likely to receive further support as it acts as a safe-haven currency.
That said, I still stick with my strategy of buying the euro on dips.
In an environment where chaos remains, there doesn’t seem to be any particular direction at the moment, and market action digests levels after sharp declines or gains, which is probably the best idea to take an opposing position for correction purposes.
High on today’s agenda is US retail sales, a fairly important piece of fundamental economic data that can cause some strong volatility if it deviates from expectations.
