Irish Debt Worries Trigger Break in Risk Currencies

Worries that Irish financial woes may mean that the countrywill have to seek outside help, pressured equity markets today, leading to adrop in demand for high risk currencies.

Worries that Irish financial woes may mean that the countrywill have to seek outside help, pressured equity markets today, leading to adrop in demand for high risk currencies.

Early in the session, U.S. equity market were breakingout to the upside, helping to drag up the AUD USD. Traders seemed cautiousabout the move, so when the news hit about Ireland’s trouble, investors weremore than willing to pare their long positions.

The closing price reversal top formation in the AUD USDsuggests the start of a 2 to 3 day break. The most likely target is the 50%level of the .8770 to .9467 range at .9118.