Stocks are getting hit hard in the US this morning, down 1.2%. The dollar is showing strength today but it is not coming closely to keeping track with risk aversion being displayed by the stock market. A downgrade of Mr. Softee by Goldman is the marquee event of the day hitting the stock market.
EUR/USD continues to hold above key 1.3650/70 support. A break should lead to a test of the uptrend which comes intraday at 1.3610. It also appears that we are forming a head and shoulders top on the short-term charts in EUR/USD. If looking to lighten longs, bounces toward 1.3720 look like the spot to do so.
We trade now at 1.3685.
