EUR/USD briefly overcame the 50% retracement of the 1.2933/1.2588 range that has been carved out over roughly the last two weeks. If we can get a close above the 1.2760 level tonight, we have a shot to retest those range tops headed into next week.
Given that the “stocks down/EUR down” correlation has become a bit frayed this week, poor US GDP data may not limit the topside tomorrow, while a very dovish Bernanke would surely encourage a topside probe.
1.2802 is the 50% retracement of the 1.2933/1.2588 decline for those keeping score at home. Stops are seen below that level, at the 1.2780 level, dealers say, with more at 1.2830.
