I think we were all pretty sure that this was going to happen but as with all things in the FX market, it’s only the timing that counts. After trading above 1.4200 yesterday (when I had my rant) its now back towards 1.3950. I don’t expect any huge capitulation, after all there have been huge amounts taken out of this market, but a broad 500 pip consolidation range would definitely not surprise.
It’s in markets like we’ve seen over the last few weeks that I’m really glad that I concentrate so heavily on cross pairs.