EUR/USD has removed support at 1.2980 with surprising ease this morning, slipping back into the low 1.2970s. Stops have been triggered on the move but dealers continue to see central bank bids on weakness and prices are quickly rebounding. EUR/USD is going to have to spend some time below 1.2980 to prompt structural longs to pull the plug on their positions.
For those looking for a fundamental catalyst for the continued slide this morning, look no further than the disruption in oil supplies from Russia to Germany. Russia is looking less and less like a reliable supplier of energy beyond its borders having disrupted gas flows to former Soviet republics twice in the last year, and now the row with Belarus that disrupted flows to Europe.
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