EUR/USD sits at 1.4245, exactly where it closed out Wednesday in North America. Overnight in Asia price action has been confined to a pretty uninspired narrow range.
Risk sentiment is looking increasingly wobbly. The news yesterday that China’s State Coucil is studying moves to curb industrial overcapacity has certainly served to diminish risk appetite.
It has to be said the EUR/USD rally had been looking increasingly tired of late, fear of renewed China sales above 1.4350 increasingly weighing.
Also everyone seems to have an eye to September and a possible downside correction in global stockmarkets.
For today, supports 1,4220/25 and 1.4200/05, resistances at 1.4250/55 and 1.4280.
Gotta think sell stops gathering just below 1.4200.