The area between 1.3800 and 1.3865 is now very much in focus after Geithner’s extraordinary comments that he is “quite open” to pitching the dollar as a reserve currency in favor of an basket of currencies. This directly contradicts Geithner’s own statement from yesterday before Barney Frank’s committee and comments from President Obama last night in a prime-time press conference.
Either he “misspoke” or is truly clueless. I’ll vote for the former.
Either way, we need to look at upside targets once again. 1.3855/65 is key with the 200-day moving average and the 61.87% retracement of the drop from 1.4737 converging there.
