Just your garden variety 14 cent move in EUR/USD this week as the market priced in the eventuality and then the reality of the Fed moving to quantitative ease. From 1.3367 we reached 1.4719 before ending the week a good deal lower at 1.3915 after the 200 day moving average rejected the price advance. Resistance is now quite formidable between 1.4715 and 1.4865. The rally was so strong that rumors were spawned of Chinese buying of tens of billion of euros to adjust their reserve allocations. Liquidity was appauling and it will only get worse as the end of the year approaches.
