Kudos to commenter DC who asked the exact right question late yesterday afternoon when he is asked if the market was becoming immune to the risk aversion trade. With US shares down 4-odd% all afternoon yesterday and the ECB offering the market little new to inspire hope, if EUR/USD didn’t go down yesterday, it probably isn’t going to in the near-term. Central banks have been very steady buyers on dips in recent sessions and it appears the market is gettingtired of banging its head against the wall.
The market is a lot less short now, so maybe we have a bit more room to slide now than we did a day ago.
As with most recent data, even if you leaked me the number, I wouldn’t know what to do with it. 1.2750 and 1.2810 are near-term resistance levels in EUR/USD; support is at 1.2620/25.
