Category in EUR/USD

Staying quiet in early Asian FX market

Nothing much to report so far this morning with most of the market’s focus on USD/JPY, and whether the bulls can muster sufficient momentum to challenge the physical and psychological barrier at 100.00. I have no strong views either way on USD/JPY; I think its best to wait and see how the market reacts if/when we get a bullish

Heavy flows going through in early Europe

Sovereign names selling USD/JPY in reasonable size near 99.25 but no sign of a pullback yet. Sovereigns buying EUR/USD just below the market a little earlier. Large GBP/JPY buying at Fix. Talk of large M&A flows driving GBP/USD sentiment. (FX trading is definitely not a fair game when you consider the information that the big banks and

EUR/USD: Expect 1.2950/1.3150 range trading

I’m maintaining my bearish bias overall but the market is still short so I don’t expect any collapses. Heavy trailing stops were triggered yesterday below 1.3150 so that becomes the initial resistance point. Some of the less volatile crosses like EUR/GBP and EUR/AUD have pulled back closer to technical support levels. This should give the EUR/USD some support soon

EUR: Still looking bullish on the crosses

EUR/JPY looks like its entered another consolidation phase, this time between 125/131, but the trend is undoubtedly bullish. EUR/AUD is supported by strong technicals, a double-bottom on the 4-hour chart, and strong flows closely related to the precious metals. EUR/GBP is starting to build a constructive short-term bull-trend after basing near .8400. EUR/CHF is supported

Cable looks like a good bet for some European volatility

Nothing of interest happening in Asia so it will be over to the Europeans to get this market moving again. USD/JPY capped by option and real-money sellers ahead of 100.00; stops above there and below 99.00. EUR/USD holding up pretty well as long as EUR/JPY does also. Cable buyers reported 1.5360, sellers 1.5425 with stops

EUR/USD: Technical resistance holding 1.3115/35

The levels we looked at yesterday, a 38.2% retracement and the 100-day SMA, have provided a decent level of resistance and should be respected. Short-term support levels start at 1.3030/40 and there will be trailing stops below there. I prefer the sell-rally strategy at current levels as I think we may be in for some 1.2850/1.3150