EUR shorts squeezed but little change otherwise
The post-ECB price action has seen weak trailing stops taken out in all of the EUR crosses and the only trend in EUR is a non-trend. The market is intent on being bearish but cannot seem to generate any momentum. Does this mean we are due at some stage for a massive sentiment-turning rally? Don’t know yet but it’s starting to look that way.
This morning’s main risk event will be the RBA monetary policy statement. AUD/USD looks to be short-term constructively bullish whilst above .8930 but Citi bank issued some research overnight suggesting that the bigger speculative players are close to neutral positioning. I still really like AUD/NZD higher to test 1.1000 in coming sessions.
USD/JPY is too hard for me and Cable is still bullish in my biased opinion.
Good luck today and TGIF.