We’ve taken out a good bit of important resistance with today’s US fiscal jitters giving the dollar a fresh thrashing. The market has been nursing a sizable short and it looks as though a significant segment is heading for the hills.
I would not expect a fast decline once shorts are covered. We’re not in that kind of market. We’re talking structural shorts that will take some time to be unwound. I’d imagine we’ll see solid buying on dips on any pullback, starting around 1.2810/20 now.
