Last week we were in stop-loss hunting mode on the topside and I expect the market to continue in the same vein, although the direction might be different over the next few days. Dealers tell me that most of the natural business (asset managers, corporates) are looking to sell near current levels (1.3080/1.3120) whereas the short-term speculative market is tending towards being long and there are trailing stops building below 1.3000.
If that’s the case then the market will gradually tend lower and test those stops over the next few sessions, in my humble opinion of course.
I’ll be back in a couple of hours when hopefully the Europeans will liven things up.