The Euro is trading slightly better this morning. Some traders attribute the strength to Ireland’s denial that it will need outside financial aid. The fact that the market is trading inside last Friday’s range could be an indication that investors remain skeptical about Ireland’s financial condition.
Technically, a trade through 1.3159 will reaffirm the uptrend and negate last Friday’s closing price reversal top. A trade through 1.3019 will confirm the reversal top and could be setting up a 2 to 3 day break to 1.2901.
The AUD USD could not confirm last Friday’s reversal top and the pattern was negated by the overnight rally. There was very little follow-through on the rally which means traders are cautious about buying at current levels. If U.S. stocks turn lower, then look for the start of another reversal top pattern