Aug 8th: USD bulls getting squeezed as liquidity diminishes
- USD/JPY has continued with it’s slide south as trailing stops seem to get triggered every 50 pips in a market caught long. There is little in the way of technical support until 95.00 so selling short-term rallies is still favoured until we get there. I’m still short and in no hurry to cover.
- AUD/USD has held up reasonably well despite the heavy AUD/JPY selling and though the bears are still in control here, a break back above .9050 will change the outlook. I’m long again and will add on a bullish break, with stops now below .8910.
- Cable had a wild old ride last night falling to 1.5210 before screaming 300 pips higher! I’ve booked profits on my long position here at 1.5500 and will look for dip-buying opportunities.
- EUR/USD is challenging the barrier at 1.3350 and these things eventually break. But, resistance should be super-firm near 1.3400/25 so I’m thinking there are better pairs to play the USD-bear card.