The technical picture looks very shaky for the EUR/USD after the break and close below 1.2850. We will have a look at some individual charts through the course of the day but at a minimum the pair looks set to test the long term bullish trendline near 1.2525 or perhaps the long-term median level (200-month MA) near 1.2000. EUR crosses are also under extreme pressure and this week-long trend looks set to continue.
USD/JPY is currently stalling near corporate sell orders, which start at 77.20 and are positioned at regualr intervals from here on. This is increasing the downward pressure on EUR/JPY.
The AUD is getting pulled in two directions with USD bullishness weighing on AUD/USD but Aussie strength in the crosses, particularly in EUR/AUD, helping provide support.
Good luck today and TGIF.
