Nick Nasad
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EUR/USD Pushes Through 1.3416 Resistance Establishing Fresh 6-Month Highs

Well, look at that, EUR/USD has managed to push through the 1.3415 area, its highs from mid-June, putting the pair at a 6-month high.

We'll see what kind of defense the bears can put up, but there could be the opportunity for the pair's bulls to go stop hunting, which could accelerate this move.

The move through resistance has helped EUR crosses across the board, with significant gains notched up vs the CAD, NZD, AUD and even the GBP, as well as being able to pare losses vs the JPY.

Are these flows moving out of the emerging market and into the "safety" of Europe because it has some better yield prospects and is working within the context of a recovery? Could be, but the recovery in Europe is going to be a slow one, but at this point I suppose its buy now, ask questions later.

The next question then is where's the USD strength we've been told is around the corner if tapering is in fact here? While we did get some movement in favor of the USD against commodity currencies (and big moves in the emerging market space), the EUR and GBP have not been slowed against the USD of late and should tell us something about the conventional wisdom.

- Nick