The USD is King again and all us non-believers have been sent scurrying for cover yet again. No point in trying to fight the tide for now.

• The EUR continues to look the most vulnerable to steep losses and technical targets near 1.2050 in EUR/USD look achievable. Resistance will be firm now ahead of 1.2700.
• The market tried to buy cable ahead of 1.6000 according to PB positioning reports but these positions were targeted in thin Friday trade. I am still prepared to buy dips in this pair but we could well see levels near 1.57 this week.
• USD/JPY proved the dip-buyers right yet again but there is strong long-term technical resistance to overcome between 110.50/111.00.
• The AUD/USD has made fresh lows below .8660 but trade should be subdued ahead of the RBA tomorrow.