USDOLLAR at Key Resistance - Reaction to Provoke EUR/USD, AUD/USD
- EURUSD slips below $1.2704/15 support zone.
- No longs in GBPUSD unless above $1.6260.
Volume levels are lower in the major FX pairs to start the week, but that may be a function of markets not having anything to chew on. Panicky headlines regarding the spread of ebola, economic growth in the Euro-Zone, and geopolitical hotspots have calmed in recent days, and alongside a diminished economic calendar to start the week, fear has given way to optimism anew.
Whether or not the jubliation in risk assets can continue indefinitely remains to be seen. Now that the economic calendar is opening up to more significant event risk in the second half of the week, FX markets are likely to be a bit more volatile again.
--- Written by Christopher Vecchio, Currency Strategist
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