EUR/USD and EUR/JPY are consolidating their substantial losses, weighed down by another weak session on Wall Street and a renewed slide in commodities. As a barometer of global demand, oil continues to point south, not a good sign coming little more than 24 hours after the Chinese announced a nearly $600 bln stimulus plan. Oil trades on a $58-handle, gold is down nearly $20 and freight rates reach unimaginable lows.
Resistance is not really seen until the 1.2650 level in EUR/USD while EUR/JPY resistance lies at 123.80. 1.2330 is very important support in EUR/USD. We trade now at 1.2555 and 122.60. Stocks are 3% lower.
