If EUR/USD can’t rally on Bernanke’s uber-dovish comments in the wake of data flagging a recovering US labor market, it won’t rally. Stops are building above the 1.4900 level and again above 1.4930, the trendline broken to the downside on Friday.
If left unscathed, I’d guess the market is using rallies to trim stale longs and EUR/USD will extend its losses in the days ahead. If we recover 1.4900/30, then the dollar still has trouble ahead.
