Apart from Kyle’s excellent call on the EUR/GBP yesterday when he picked the top almost perfectly, I have not talked with anyone who has a firm grasp on what is happening in the market at the moment.
The EUR is being dragged down by the bad news out of Eastern Europe and the failure to hold on to the 1.30+ gains will certainly be worrying the bulls. Major exotic option barriers are still said to be in place at 1.2690-1.2700 and that should again stem any losses with yesterdays highs around 1.3070 now the initial resistance point.
The AUD was hit hard in early London when a Japanese bank sold 700 million AUD/JPY. Regardless of any improvement in commodity-market sentiment, if big flows like this continue to hit the market, the AUD will stay under pressure.
