Good morning,
The EUR had another decent downmove yesterday trading down to a low of 1.3735 overnight.
US interest rates reversed quite sharply to the upside giving further support to the USD.
My scenario proved to be correct, we firstly held the support @ 1.3835 before squeezing a lot of short term traders out on the upside, to finally break the base of the triangle support @ 1.3790.
What is important to note is that not only the EUR went down vs the USD (based on the sovereign concerns), but AUD, GBP, JPY were also trading on a very soft patch.
The G20 in Seoul is starting today and we may face some higher volatility on this basis, but I still think the risk is for a stronger USD across the board.
We have had a decent correction since last Thursday's top @ 1.4282 and the 1.3730 region as held since October but I think it's a question of time before we attempt to break it.
In terms of levels, first resistance comes around 1.3830, then 1.3880 and 1.3950.
On the downside, we find 1.3740, 1.3700 and 1.3650.
Have a good day,
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