• EUR/USD dropped to 1.1113 on Weds rallies to 1.1241 on Thursday

• Drop almost reached 1.1105, 50% 1.0125-1.2084 rise, 200-WMA 1.1102

• Weds close 1.1158, Thursday's range 1.1153-1.1241, open 1.1155

• Drop was severely stretched under 1.1200 base 20-week Bollingers

• Snap back has alleviated stretched nature of the decline

• Stock drops may encourage traders profitably short EUR to pare risk

• Bond rally has tightened spreads underpinning EUR/USD

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EURUSD weekly chart

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