Irish Debt Worries Trigger Break in Risk Currencies
Saturday, September 18, 2010
, Posted by Usman Ali Minhas at 12:57 PM
International Trading
Worries that Irish financial woes may mean that the country will have to seek outside help, pressured equity markets today, leading to a drop in demand for high risk currencies.
Early in the session, U.S. equity market were breaking out to the upside, helping to drag up the AUD USD. Traders seemed cautious about the move, so when the news hit about Ireland’s trouble, investors were more than willing to pare their long positions.
The closing price reversal top formation in the AUD USD suggests the start of a 2 to 3 day break. The most likely target is the 50% level of the .8770 to .9467 range at .9118.
