The charts show a clear break of uptrend support on both the hourly and daily time frames in EUR/USD. Looks like the market’s near-term psychology will flip from “buy the dips” to “sell the rallies” as a result.
The true test will come after the FOMC minutes this afternoon, especially if they set the stage for QE2, as most expect. I would expect macro funds, many of whom have milked this rally for over a month, to use any FOMC bounce to lighten up longs further.
