Following the Nowotny swan dive yesterday, and the resurgence of the dollar, the euro is getting all beat up again
1.1360 was support late into the European day yesterday, and overnight. The price is just dipping below as sellers keep the pressure on
EURUSD H1 chart
I agree with Mike's view yesterday that the market misjudged his context. What the moves do highlight is that the market is still very skittish and very willing to give up any gains in longs at the first sign of any news that the ECB might increase QE. If you needed a reminder why you should keep longs on a tight leash then this was one
1.1350 is another line of support and there's more at 1.1340/45, 1.1330, 1.1310/15 and then the big figure. This gives a warning to shorts that old Teflon isn't quite ready for parity just yet
We've got a pretty balanced market right now. We pushed the envelope on gains after taking out 1.1450 but then found 1.1500 to tough to get above. 1.1450 then became resistance once again. 1.1420, 1.1400 are the next resistance points from the current price, which is right now trying to get back above 1.1360
The final Sep inflation report for the Eurozone is at the top of the hour and it's expected in unchanged from the flash at -0.1% y/y. The risk is if we see it come in much worse, but the final isn't usually out by a big margin. As ever, watch the core which is also expected unchanged at 0.9% y/y
