Market uncertainty and profit taking in both equities and Forex was further exacerbated today by a plethora of bad news on banks, further downgrades from our beloved Dick “The Bank Unibomber” Bove and rumors aplenty. This Friday also marks the end of the US quantitative easing program [at least the portion of buying our own Treasuries] so we may have experienced some shifting in the Forex market for that reason. If you were an equity Bear, you needed a bib for all the drool.
Rather than rehash the gossip and mud slinging, I will point out that USD/CAD is hitting resistance which had been strong support for 45 days in August/September. While I’ve yet to look into AUD/USD I’m hoping the opposite is there which would help the commodity sector tomorrow. We don’t need financials to turn higher; it merely makes it easier.