"The EUR/USD gap lower on Sunday evening was a huge technical event, as the move brought the pair below ascending support of the relative wedge. The news seemed warranted with the weekend G7 alluding to global support for a stronger greenback. However, U.S. dollar bulls were blindsided as the euro commenced a massive rally, which began about 2:00 AM EST.
Consequently, by morning, the euro had retraced all of the gap-lower losses and then some. By 8:00 AM EST this morning, the pair had gained 176 PIPs, staging one of the most dramatic rallies seen in several weeks.
At present, not much seems to be in the way of fresh lows for the U.S. dollar, as Sunday evening likely took all chutzpah out from bull's sails. If the EUR/USD posts a new high, capitulation could ensue, with the top end of the range sitting in the 1.6250 area."