EUR/USD dipped as low as 1.4340, stopping out a number of stale longs in the process, but it was unable to build any downward momentum and soon rebounded back into the 1.4340s.
Just a typical day in EUR/USD. Enough of a dip to plant seeds of doubt in the minds of longs based on the belief in the reflation trade but not a swift enough move to engender any short-term panic, the type we here at ForexLive thrive upon. It’s a slow agonizing death for the longs, but death none the less.
Buyers on dips to support in the 1.4355/65 area have not been rewarded today either so we have a generally disaffected market to deal with in the run up to payrolls tomorrow.
Equity markets are off their lows as we near the final hour of trade while commodities are lower, with the CRB down 1.3%. Last night’s spill in Chinese equities seems to have injected a note of caution, as has the modest USD rebound.
EUR/USD trades now at 1.4348 while cable consolidates losses at 1.6780, up from 1.6752 lows.