FXWW News/Open/Wrap

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.

  1. With you on the Aud/Usd trade Sean I have been long since 1.0550 and have built a sizeable position, got v nervous today when it the bottom of the 4hr pennant. Target 1.10 ish, depending on PA at that time, it’s been so over sold I’m looking to the market to balance things.

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