What began off as a consolidative in the Asian session and European morning has turned into a correction. We suspect that bottom pickers will emerge in the euro ahead of $1.33. Assuming that stop loss selling has exhausted itself, a test on the upside comes in near $.13360.
This Great Graphic (made on Bloomberg) shows the 7-month uptrend in sterling. It was tested today and yesterday and thus far is holding. Even though it comes in near $1.6030 today, it probably takes a convincing break of $1.60 for the bears to get in control.
The dollar made a new low for the session as North American session began, near JPY88.30. Dollar buyers re-emerged, but the market will likely find it difficult to overcome the post-Amari high near JPY89.10.