A waterfall, a falling knife; choose your metaphor…Forex is a truly remarkable market when it gets the bit in its teeth. It can accomplish more in day than most of us could ever dream. The 1.3000 level put up a bit of a fight intraday but nothing like the several session battle I envisioned. It will now act as resistance on rebounds. Selling did accelerate after the 1.3050/55 fibo support area gave out in Asia overnight, as expected.
As is so often the case, New York traders walk in find the battle has already been waged. We’d expect a choppy consolidation this morning as the other markets adjust to the new FX levels. Stocks are taking the move badly, as one would expect as are commodities. Look for the Fed to cut next week, along with the ECB and BOE.