Category in Others

European currencies range-bound in Asia: USD/CHF squeezing shorts

USD/CHF has been a significant mover over the last few days and the short squeeze could pick up momentum above .9400 (see chart). Cable is retracing off its recent highs but I’m still in dip-buying mode. Support on the day at previous highs near 1.5390 but I prefer to wait for levels closer to 1.5280.

EUR/CHF: Nice risk-reward in going long at present levels

Just going through the charts and I found this nice risk-reward trade in EUR/CHF (see chart). The trend looks reasonably constructive and the most recent rally from 1.2275 to 1.2465 has retraced exactly 61.8%. I’ve taken a long position at 1.2375 with a 50 pip stop and a measured target at

Wild moves on the crosses and more to come

The AUD was the first mover, recovering after poor domestic business conditions data and taking out stops in AUD/JPY above 92.50. The market has closed above this important technical level and I’m firmly in the buy-dip camp on this cross. EUR/CHF was the next mover with real-money and hedge fund buyers emerging in early Europe

NZD/CHF: Looks like a bullish technical set-up

Definitely not a pair that I pay a lot of attention to but my brief analysis below on the Yen crosses concluded that AUD/JPY looks bullish but CHF/JPY looks toppy, ergo we should be buying AUD/CHF! But, AUD/NZD is in a fairly solid medium term down-trend and our earlier look at EUR/NZD showed a bearish

JPY crosses still likely to provide most market leads

I’m presuming that we don’t get any major economic or political statements out of the EZ, and if we don’t then the Yen crosses look like the most likely causes of volatility. The move higher in USD yields have given the USD/JPY a bid tone and this could move over to the crosses as well.