After a blow-out to the topside during the Asian afternoon session in both EUR/USD and AUD/USD, Europe has sought to correct those moves in early trades with EUR/USD now some 150 pips off its earlier high whilst AUD/USD is some 90 points lower.
There doesn’t appear to be any news just Asia’s bad habit of taking out the stops then correcting. One suspects that this bout of risk reduction is far from over despite the moves witnessed in Asia today. EUR/USD has been buffeted by cross activity over the last 24 hours which would appear to have run its course (at least for now).
All up I would respect a broad 1.2450-1.2650 range in Euro whilst AUD/USD looks a sell anywhere above 84 cents.