EUR/USD is trying to stabilize after a long-awaited liquidation of longs finally hit the market, seemingly out of the blue. A handful of rumors, flows and regulatory moves helped prompt a very swift move from above 1.50 to below 1.49 in just over an hour.
1.4940 and 11.4980 are resistance now on rebounds while the 1.4880 area is very important support on pullbacks. Looks like we could be in for a period of backing and filling for a week or two know that the rally has finally taken a hit. Trend support from the March lows comes in at 1.4646 today.
Update: here is a fresh rumor. The Stock market selloff is rumored to be the liquidation of Galleon. The last few weeks anything that moves has been tied to Galleon….
