CNBC is all excited about the outside day key reversal in EUR/USD and the dollar index (and AUD, etc…). I’ve not made a big deal of it because they have worked no better than a flip of the coin lately. We did have one on Monday which garnered some follow-through (we made a new high at 1.5061 before collapsing on Monday), so I guess they are back in fashion. There is plenty of technical support for the bounce from the prevailing uptrend and the strong area of support in the 1.4670/90 area area, so a key reversal is just icing on the cake…
EUR/USD is consolidating in the 1.4840 region. Traders note some selling from a UK clearing bank below the 1.4850 level this afternoon.
