The euro is trading at levels against the dollar not seen since a brief two day foray in February--1st 1.3711, 4th 1.3660. Before that we have to go back almost two years, to November 2011, to find the euro crossing 1.3700. When the market trades to such a point you can usually assume two things, there should be sales in front of the level and stops behind.
So far mild dollar sales have kept the euro edging higher though the size and volume behind the moves seem moderate. With the euro poised before a two year level, on a fundamentally inspired run, and heading into the London close and the limited liquidity of a New York Friday afternoon you can be sure that the New York interbank traders are eating lunch at their desks.
Offers are to be expected into the February 1st high at 1.3711, though they have not been in much evidence yet, with stops of unknown extent above 1.3720.
It could be an interesting afternoon; it will certainly be a nervous one for bank traders watching their order books.
Chief Market Strategist
WorldWideMarkets Online Trading
Charts: WorldWideMarkets Alpha Trader