The speed of the USD snapback yesterday caught us by surprise even though we were wary of renewed USD profit taking at lower levels. Unlike earlier in the week, this time the turnaround has caused chart damage to the 2012 downtrend. Capped below neckline resistance, EUR/USD has now closed below its 21-day average, suggesting a return to its 2012 lows is under way. Even NZD/USD produced two fresh signs of a top over the past 24 hours.
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Barclays Capital