Traders are blaming Middle Eastern central banks for the extension of the rally toward the 1.4400 level. So far, we’ve reached 1.4392 from where a dip to 1.4375 unfolded. Firm oil prices presumably are giving Mid-East states more dollars than they are comfortable holding and they are diversifying reserves.
Trade is very choppy. Small trailing stops from intraday longs are clustered below 1.4360 with larger stops below 1.4340. We trade now at 1.4372 from 1.4388 when I began typing this…Chop-chop!
