Pull backs have been extremely shallow over the last 24 hours, barely to the 1.4770 level. We are near those lows once again amid some frustration that the pace of the EUR rally has slowed. An overnight spike to 1.4840 was quickly rebuffed and traders are growing a bit bored.
Some of the profit-taking this morning seems to be linked to the Fed’s laying the groundwork for a partial exit strategy from its super-loose policy by talking with primary dealers about setting up reserve-draining reverse repurchase agreements.
Support is eyed at 1.4740 and 1.4720 is profit-taking accelerates; some see a pullback toward the 1.4600 evel by the middle of next week before a fresh assault on 1.4865.
