EUR/USD is seeing some significant profit-taking after getting yet another round of confirmation that the Fed will embark on another round of quantitative ease in early November. Traders added to dollar shorts on the news and are now regretting it as the euro slides.
We’re down a cent from the highs after the BIS sold above 1.4150…expect some buying toward 1.4000 from Asian options players. Stops are building below 1.4000 if we continue to slide, however.
Gold, which has been closely linked to dollar weakness, looks as though it has put in a short-term technical top, for what its worth…
