After finally managing to trigger the stops below 1.3165, EUR/USD has stabilized after making a 1.3133 low on EBS.
The euro is all on its own today, severing its link with US yields today. The Irish downgrade along with threatened downgrades for Belgium, Greece and Spain earlier this week and the market’s concern over the lack of detail in the EU’s permanentcrisis mechanism all weighing on the single currency.
Liquidity is atrocioustoday and will remain horrible for the balance of the year, unfortunately.
Traders expect trapped longs to sell rallies near-term toward 1.3180/1.3200. More sellers are seen in the 1.3220/30 window.
