EUR/USD has broken through the 1.2820 area that had been capping the market with the market getting a lift on a number of fronts. Hopes that mark-to-market accounting rules will be applied in less-Draconian fashion going forward are helping stocks as is the news that JP Morgan had a profitable first two months of the year. Talk the Fed bought bonds helped get the ball rolling as well.
EUR/USD has reached 1.2859 thus far and is consolidating gains. 1.2900 and 1.2990 are topside targets near-term. If lucky enough to be long EUR/USD despite the noisy trading conditions in recent days, we’d encourage taking profits on at least half your book between the above level for fear we are merely seeing a bear-market rally in both EUR/USD and global equities.
