Not much happening when i sat down an hour ago with the EUR/USD holding firm after a break up through 1.2980 last night, but the follow through has so far disappointed.
There are likely buy stops up through 1.3000 now but also expect some heavy supply in the 1.3025/35 area from the usual recycling SNB/Dutch names ahead of Friday’s highs of 1.3072.
On the downside there’s some rising hourly trendline support coming in from Oct 3 lows, around 1.2950/60 where there’s also talk of some Asian sovereign bids. Below there are real money bids at 1.2920/30 with sell stops beneath and again through 1.2900.
There’s not a heck of a lot of important data this morning to get your teeth into, so a lot will rely on flows and any comments perhaps from the ‘Iron Chancellor’ over in Athens .
IMF forecasts don’t appear to have dampened enthusiasm with the market preferring to follow a sharp rise in the Shanghai composite and the jump in iron ore prices, but the sharp bout of profit taking in EUR/AUD does appear to be weighing somewhat on the EUR/USD in the near term.
AUD/USD’s choked at the 100 day MA up at 1.0248 so far which is also surrounded by real money offers (and probably some RBA commercial offers), but the downside looks fairly solid for now with yesterday’s option bids protecting the 1.0150 barrier.
(Gerry’s got a well deserved day off today, but will be back tomorrow)
