My EUR cross positions take a beating
- EUR/GBP accelerated lower once below .8100 and now targets support at .8050/60:
- EUR/AUD wiped out support levels near 1.2420 and is now eyeing further strong support near 1.2330:
- EUR/JPY is the only one obeying the script, stopping at 108.00 before pulling back to test support at 106.50.
At the moment I think the market’s reaction to Draghi’s comments is just a typical attempt by the bears to regain control. Real demand for EUR/USD still outweighs supply and even though there were negative headlines last night, there are likely to be fewer and fewer over the next few weeks, thereby taking away the fuel for bearish momentum.
I’m sticking with my long EUR plays for now at least.