Reuters is playing up the reason for the turnaround in EUR/USD as the forex manipulation probe but that doesn’t make any sense to me.
What does make sense is the worsening technical picture in EUR/USD. The pair touched below 1.3742, which was the Oct 23 low. A spike higher and reversal is often one of the best signs of a top. The risk is the Fed but I think the market is seeing a chance Bernanke keeps the door open for a December taper tomorrow.
EURUSD daily
If 1.3742 breaks decisively, I target 1.3660 or the early Oct high of 1.3646, purely on technicals.
