Without a big-ticket fundamental event (scheduled or unscheduled), the prominent levels of support on EURUSD, S&P 500 and other risk-sensitive assets will prove more durable than disorganized sentiment trends. That was the case Thursday as a docket of second teir data and newsfeed light on surprise offer a definitive bounce for EURUSD at 1.2825 and the S&P 500 above 1425. However, we haven't simply returned to a bullish (risk appetite) trend. Conviction is lacking for investor confidence on both sides of the spectrum, so whether the EURUSD breaks lower or AUDUSD overtakes 1.0300 falls back on the shoulders of fundamentals. Perhaps 3Q earnings reports from JPMorgan and Wells Fargo before the NY bell can generate enough heat to jumpstart these markets.
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