Yesterday afternoon looked like a watershed in the forex market. Previous correlations were breaking down, fundamentals were reasserting themselves…What happened then? China came in and bought the EUR/USD dip and we were right back where we started. It is comforting to see we’re gravitating back to the oh-so familiar 1.4215 level, the most traded number in the history of mankind, or so it feels.
Moral of the story? There ain’t one, sad to say.
The one durable take-away from yesterday’s price action is that 1.4300 looks like it will be defended on rallies for the foreseeable future.
