If there was a barrier at 1.3650 it is now an ex-barrier as we dipped to 1.3648 for a nano-second.
1.3635 remains the key level to watch near-term with both a bottom on the hourlies and the 38.2% retracement of the August/November rally at that level.
Our intrepid developer tells me the issues with the video playback have been sorted out..
Not sure whether they are cutting medium-term longs or setting fresh shorts but black-box type accounts are selling EUR/USD at the moment. Many use the 15:00 GMT time to resent their models and only trade once a day…
Traders report some stops right around 1.3635/40. Given Fibo support there, might be one of those deals where we do the stops, then rebound off that level…
EUR/USD made a probe below yesterday’s 1.3670 low, slipping to 1.3663 on the interbank EBS platform before steadying. A sustained break of 1.3670 opens the way for next support at 1.3635.
That level is the 38.2% retracement of the 1.2588/1.4283 rally as well as a bottom dating back to October 5. Options-related buying is expected ahead of 1.3650 and 1.3600…
Traders report a NY consulting shop is telling clients that the Fed will scale back QE2 if US data continues to be strong.The Fed has made that clear from the get-go.
Not exactly earth shattering but the dollar is firmer while equity prices ease.
A poor outlook from tech giant Cisco is weighing on US equities, as is Irish-inspired risk aversion and fears China will have to raise rates further to clamp down on surging inflation.
The S&P is down 0.9% in opening trade while EUR/USD has dipped back to 1.3700.
USD/JPY penetrated downtrend resistance yesterday but closed back below the line. Today the line is drawn at 82.35. A close above would be a further bullish signal along with yesterday’s close above 82.00. Keep an eye on the 10 and 21-day moving averages: They look like they could cross bullishly in the next day or so, a signal for some medium-term trend-followers to close close short positions.
Thanks to Tom for the link…
Risk aversion is a dollar positive from a macro perspective.
Just crossing the wire, Ireland’s opposition party says it expects the government to have a working majority to pass the 2011 budget, a modest relief for EUR. A small positive. But as we’ve seen, passing a budget is easier than meeting a budget, a potential big negative…
Looks like, at a minimum, the Obama administration would be willing to extend the Bush-era tax cuts for two years. Geithner hinted at that in a CNBC interview and Obama adviser David Axelrod was even more specific in an interview with the Huffington Post.
The question now is will House Republicans settle for a temporary extension or will they push to make the cuts permanent.
Who would have expected the Great British Pound would be the safe-haven from an Irish-inspired market storm? We live in interesting times.
EUR/GBP has fallen to the 0.8485 area on the Irish woes even as some fret that the UK banks have significant exposures to Irish property developers. Cable is up at 1.6150, less than two cents from trend highs despite the euro being 6 cents below its highs given the weakness in the cross.
0.8464 is important support for EUR/GBP near-term while 0.8520 is now resistance.
1.6185 and 1.6215 are near-by resistance for cable; 1.6105/15 is now support.
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