Quick overview of Asian market

  • Market triggered AUD/USD trailing stops below 1.0390 but failed to trigger larger stops below 1.0380 and dealers were forced to cover:
  • Better than expected Chinese economic data led to further short-covering in later trade:
  • Bank of Korea left rates unchanged as expected:
  • EUR/USD stops above 1.2780 were triggered in very thin trading conditions:
  • USD/JPY hardly moved from 79.50:
  • AUD/USD rallied 50 pips from earlier lows on pre-weekend short-covering:
  • Regional stocks fell by 0.5% on average but Gold continues to glitter at $1737/oz:
  • Dealers report illiquid trading conditions with few major limit orders (but plenty of stops!).

  1. Hi Sean,
    Do you think the positive sentiment will continue into London or is this something to fade? EUR/USD looks like a great short, with a SL at 2810, 2700 target.

  2. Morning Milan. I sort of prefer the short-term buy-dip play but not with any strong conviction. I’d ignore what happened in Asia, there was no liquidity and mkts moved on next to nothing. I’d guess EUR/USD 1.2720/30 base for today and maybe see stops above 12810 triggered later? Something like that is my bias but as said, not with strong confidence

  3. Sean,

    Why do you prefer the short term buy dip ? The backdrop is quite poor for EUR :

    – EUR/GBP : below 0.800
    – EUR/JPY : break out 102.20
    – EUR/AUD : yesterday low below 1.2200
    – EUR/USD : below 200 MA daily

    What’s your view to buy dip ?

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