As the coyote says some days you catch chickens and other days just feathers. Today, the reflation bulls have a mouthful of feathers. Gold is down to $938 from above $980 a few days ago. Oil is down to $71.00 bucks after highs above $73 yesterday afternoon. The buck is on the ascent as well, driving medium-term traders batty but giving intraday scalpers a target rich environment.
1.3940 is next technical support for EUR/USD with more at 1.3915. 1.4030 offers are seen on rebounds.
Just as we cautioned against buying strength yesterday, we’d be reluctant to sell weakness today. Central banks are likely to keep us in broad ranges and my guess is we are closer to the bottom of that range at the moment than the top, as we trade at 1.3965.
