Nasty USD reversals suggest bulls slowly losing control

  • USD/JPY: On 2 occasions now in the past week we’ve had pretty nasty reversals from levels close to 110.00. This may not mean that the bull move is over, but it certainly suggests that bulls are losing momentum and we may be in for some protracted sideways trading.
  • EUR/USD: The market was not comfortable with levels near 1.2500 and judging by the EUR rally on the crosses, it looks like the market was overly short across the board. Again, a period of consolidation is the most likely outcome but the USD bulls will have cause for concern.
  • The AUD, NZD and CAD all held (more or less) important support levels against the USD and with Gold also reclaiming $1200, USD bulls should exercise caution.

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