Doesn’t take much of a bounce in the S&P to send forex dealers scrambling to cover EUR/USD shorts this afternoon. We’ve bounced about 6-7 points in the S&P from afternoon lows and that was enough to push EUR/USD up through stops above 1.2300.We reached 1.2308.
The market lost conviction about 9:42 New York time this morning when the firs wave of US equity selling petered out. It’s been a slow grind higher for EUR/USD since them…with a few spurts to the topside thrown in for laughs…
1.2325 is next resistance.
USD/JPY stops are above 90.00; they could become vulnerable if stocks rebound further…