The Fed’s vow to keep rates low for a long-time to come has helped fuel a resumption of the reflation trade after some pre-meeting profit-taking today (Thanks, Bloomberg!) .
EUR/USD reached 1.4842, essentially retesting last night’s spike high while cable extended its gains to 1.6465, about 10 pips above the 1.6454 prior high after the BOE minutes.
1.4850 barriers are rumored to be in play while 1.4865 is the top from last September as global financial system melted down.
A move back below pre-statement levels of 1.4775 will spook intraday longs and lead to profit-taking.
Thanks to Bear for the reminder that AUD/USD barriers are rumored at 0.8800. 0.8789 was the high there, a new top for the move.
