EUR/USD: Selling relief rallies still ‘safest’ play
There is little sign of the USD up-trend to start easing off and we are again approaching some big optionality levels, 110 in USD/JPY and 1.2500 in EUR/USD. The speculative market is undoubtedly short of EUR/USD, with good reason, so the downtrend is likely to continue with occasional stop-loss driven spikes higher.
Interbank sources report sell orders in EUR/USD near 1.2650/60 and in AUD/USD near .8860/75, so if you’re a USD bull then these are the levels to watch for.
And of course it’s risk-off Friday, so any excessive positions built up during the week will be reduced today ahead of the weekend.
Good luck and TGIF.