1.3415/20 is key now. Expect stops if that level is breached. Dwindling odds of QE3 and the inability if EUR/USD to build a beachhead above 1.3500 for long is prompting longs to trim positions.
Euro fundamentals have improved quite dramatically since the Fed’s move to help liquify European banks on Wednesday but the single currency is struggling to take advantage. Interest rates have plunged on sovereign debt and bank shares have rallied something like 15% since they bottomed ahead of Thanks giving.
Sell first, ask questions later, seems to be the market’s mood ahead of the weekend.
