Markets can be frustrating. You take out an area of resistance, trigger a few stops and expect to gain a head of steam. What happens half the time? You end up sliding right back into the range and you’re long at the top…That’s precisely the situation seen this afternoon as EUR/USD triggered a few stops above the 1.3300 level, reached 1.3309 and then promptly turning south. Follow up the turn with gloomy FOMC minutes and the fresh longs get taken to the wood shed.
Down side pressure remains intact in EUR/USD as long as the 1.3320 level remains intact, in my view. Beware of selling weakness as reports of central bank bids in the 1.3140/50/60 region have been heard both Tuesday and Wednesday. EUR/USD trades now at 1.3230.
