Strong manufacturing surveys in the US, Eurozone, and UK led investors into buying at the opening overnight and as ISM chairman Ore said the survey pointed to a V-shaped recovery, stocks closed higher overnight and brought a good retrace to risk appetite with USD losing grounds against majors.

A few investment houses publishing risk on trades seems to be attracting fear&greed players to get involved before NFP this Friday which I find a bit risky.

EURUSD seems to be basing around 1.3855-65 area on the back of take-profit appetite and 200 SMAVG weekly level at 1.3868. On intraday charts before RBA decision this morning ( a possible hike with a 78%  chance priced in will boost AUD sentiment and AUD leading the risk trades will be supportive for EURUSD as well ), EURUSD is trading in a very tight range between 1.3920-1.3940 and both on 120 mins and daily charts, a break of 1.3940 suggests a possible topside squeeze up to 1.4025 and 1.4075 accordingly.

A break of 1.3920 support brings another chance of 1.3880-1.3890 squeeze on the downside, where I would prefer to go long on dips with a tight SL at 1.3855 instead of a buy on break at 1.3940 with a stop-loss at 1.3915.