Euro Sells Off after Reaching Minor Retracement Zone
News from the European Central Bank that overnight lending at the 1.75% penalty rate spiked 15.8 billion ($21.4 billion), the highest since June 2009, pressured the Euros overnight. Reports circulating suggest that this spike may be related to renewed problems in the Euro-Zone periphery.
December Treasury Bonds broke on Friday as investors shed safer assets in favor of higher-yielding risky assets. The main trend remained up on the daily chart while the market completed a 50% retracement of the 124’22 to 135’19 range. The first target was 130’17. The market tested 130’12.