Bernanke Uses Heavy Artillery, Dollar Is Wounded
Admirals | Jul 11, 2013 07:46AM ET
All you want to say about yesterday’s trading is: wow, what a night! The situation on almost every pair with USD reversed 180 degrees. All because of Ben Bernanke who suggested that QEIII will be kept alive until the economy is entirely back on its feet (inflation, jobs). So basically as long as it is not, the FEB will buy. Almost 300 pips up on EURUSD seems quite a response, doesn’t it? This upswing crashed all the bearish analyses that have been made lately. Of course traders should be expecting some local correction movements but in the mid-term, the sell signal was definitely denied. Currency wars are back on. Time for Mario Draghi to react. Bernanke might have weakened the dollar but we cannot be sure that the ECB will not do the same with the EUR in the near future.
The closest resistances are 1.3175 and 1.3250.
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