Order info updated
The delay in fiscal cliff negotiations has obviously affected risk sentiment over the last few hours, with equity markets getting particularly targeted. Stops in AUD/USD below 1.0450 were relatively easy pickings and there are more heavy stops reported below 1.0380. I’d expect some solid technical support near 1.0395/1.0410 to emerge as long as no further negative headlines emerge from Washington.
With thin markets now the norm for the next two weeks, sharp 100 pip moves in either direction would not surprise at all, so big levels like 109.80/90 in EUR/JPY could also be targeted. There are major stops expected below there.