The dollar storm comes in waves. After the recent round sent EUR/USD to struggle with 1.30 and AUD/USD to flirt with parity, a new wave now confirms the breaks, with EUR/USD reaching a low of 1.2963 at the time of writing, and AUD/USD falling to 0.9970.
USD/JPY continues advancing above 1.0170 (after breaking the April 2009 peak of 101.44). GBP/USD is under 1.5360, but could still be considered the relatively resilient pair in the storm of the past 24 hours.
1.2960 provides support for EUR/USD: the line worked in both directions many times in the past. Recently, it worked as a cushion on April 24th. Below this level, it would be the lowest since early April. For more, see the EUR/USD forecast.
Update: EUR/USD extends its falls and falls to 1.2940. GBP/USD also its relative resilience and is now down to 1.5317. USD/JPY is getting close to 1.02.
The recent surge came on the background of Ben Bernanke’s speech. The chairman of the Federal Reserve usually rocks the markets, but this time, he really didn’t say anything related to monetary.
Perhaps markets were waiting for Bernanke to get out of the way before the next surge.
More:
- Forex Analysis: AUD/USD Plunges to Parity
- Dollar Storm: GBP/USD Surrenders and Loses 1.54
- Fasten your seat belts – more turbulence ahead
