The 1.2550 area is proving to be tough resistance now after Wednesday’s sharp fall and a re-run down through 1.2500 now looks on the cards as the path of least resistance. I’ve heard nothing in the way of flows this morning but would now expect some sell stops down through 1.2480 (yesterday’s lows) with little between there and 1.2421 the lows of Oct 2, ahead of the 200 day MA at 1.2409.
AUD/USD’s also adding to the cause as bids ahead of 1.0300 contain any fall-out after stops were triggered down through 1.0315 earlier,. The bigger levels to watch however are sell stops down through 1.0300 and 1.0280.
EUR/AUD’s around 1.2503 with the AUD/USD at 1.0324
