Looks like we are getting an additional medium-term short-covering as EUR/USD breaks above both its seven and a half month old down trend (1.2677) and trend highs (1.2723).
1.2937 is next resistance for EUR/USD, the 100-day moving average.
Traders report some selling from Mid-East central banks into this afternoon’s strength.
The market seemed to get caught napping today, expecting more range trade.
Equity traders were caught napping as well, expecting weak earnings from Alcoa overnight, only to be shocked by an upbeat report. The S&P is up about 7% from its lows last week…
1.2732 is the high so far.