EUR/USD is bouncing back from a test of the 1.4800 level. Resistance on the short-term charts lies at the 1.4840/45 area. Look for short-covering to accelerate if we get much above 1.4850…we’ve seen this movie several times this week, and it always seems to end somewhere between 1.4925 and 1.4975. Maybe Friday will offer a different ending.
UPDATE: Traders report a US fund adviser has put out a report to clients taking a hawkish view of the ECB.
Funnily enough, I’ve been getting the opposite vibe from them of late as they pay more attention to the weak state of the European banking system.