Markets seem more inclined to own dollar-denominated hard (and wet) assets like gold and oil rather than US Treasuries. EUR/USD has taken out resistance in the 1.2960/70 area, a level from which EUR/USD went into a sharp dive in London this morning. 1.3000 and 1.3027 are next points of resistance on rallies. 1.3080/85 is very important resistance on rebounds. Above that level the market’s complexion changes dramatically.
