Buying opportunity or beginning of the end? That’s always the debate when frantic rallies come to an end and markets begin the retrace. EUR/USD staged a slightly more than one-cent recovery overnight after triggering stops down to 1.4670 in relatively early Asian trade Wednesday. It looks as though long-term EUR/USD bulls were heartened by the bounce from ahead of important support at the 1.4625 level overnight. Like yesterday though, sellers emerged in the 1.4780 area.
There is no US data with much market-moving potential today. Wholesale inventories won’t be a big highlight today.
The 1.4730 area is now providing support on pullbacks after providing resistance earlier today. 1.4725 is the 50% retracement of the 1.4670/1.4781 rebound, and is further support near-term.
US equities are firmer in electronic trade, oil is up a buck and gold has bounced nicely, so it looks as though we are due for a bout of backing and filling after a big slide over the prior three sessions.
