Blood on the trading floor
EUR/USD made new low for the year this morning after huuuuge sell off in Cross/JPY. EUR/JPY made 449 pips trading range, which is the 7-th largest during the last 9 years. Liquidation of large carry trade positions some of which > 500M was the name of the game. Trichet wasn’t hawkish neither dovish and the traders decided to postpone any changes in the direction of the forecx market. Today’s NFP could be used as a trigger for correction in EUR/USD, but the mood is extremely bullish for the USD. We should see a number below -120K for any significat US Dollar selling to emerge. Support is @ 1.4210 and 1.4100 before the key 1.4000 level. Resistance is @ 1.4380 and 1.4460.
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