1.3335 is shaping up as the new line in the sand. Hedge funds were said to have been the buyers on the way up but real money sellers were lying in wait, interbank traders report. Expect stops to build above 1.3335, which if tripped, could put the 1.3380 highs from MLK day in play.
I’m beginning to suspect that if the ECB was a buyer of EUR/USD at 1.2850 last week, as advertised, perhaps they are letting some go on rallies now to keep the exchange rate out of the headlines as they struggle with gapping interest ate differentials between Germany and the peripheral counties like Spain and Greece.
