Tough day to figure…Sovereign debt woes continue to weigh on euro but the European stock markets hold gains. US rates soar but US stocks take it in stride. Gold plunges with the euro but oil dips only a bit over a buck and remains above $80. Hard to wrap it up in a nice, neat analytical package.
One of the first rules of the markets is don’t fight the tape…the tape (price action) is extraordinarily negative for EUR/USD, so if short, sit tight. If square, look to sell toward 1.3420/30. If long, look for a bounce toward 1.3420/30 to get the heck out…
Having finally broken the 61.8% retracement of the 1.2450/1.5150 rally overnight at 1.3480, 1.3085 becomes the medium-term downside target. Ignore the noise, ’cause the noise isn’t telling us much, but the tape is…
