Range: 1.3919 – 1.4085
The bearish storm surrounding the Dollar seems to have paused. The Euro continues to struggle showing no real sign on trying to correct today’s falls. EUR/USD opened above 1.4055, and has traded as low as 1.3919 (new 3 day low). The rejection of the 1.4281 high of last week and break under 1.4000 level exposes a deeper retreat to 1.3905 and then to the 1.3860/80 regions. It is not surprising to see negative headlines resurfacing in Europe; Ireland are back in the news with reports indicating Ireland may need to bailout from the IMF.
Range: 1.0094 – 1.0165
With risk appetite climbing to new heights, it should be no surprise that the Aussie Dollar is pushing untold levels against many of its counterparts. However the Aussie Dollar has been trading with a weaker tone against the US Dollar during the Asian session. After opening at 1.0160, a pullback led by technicals took the price towards 1.0085 (daily low). Since then the Aussie has rebounded slightly trading around the 1.0120 level.
The Japanese Yen erased early losses against the US Dollar on Monday after efforts to extend Friday’s sharp rises were in vein. After touching 81.44, risk averse conditions hampered the escape from low levels. To see a swing bias to the upside (and strong recovery) we would need to see the pair break through the 82.00 level.