Quiet start to interbank trading week; levels to watch are….
Not much happening so far this morning and we are still trading around NY closing levels from Friday.
- Interbank dealers have a bearish bias in USD/JPY this morning which suggests that order books may be slightly skewed to the downside. Important support in my opinion lies at 93.40/50.
- AUD/JPY still hanging around the important technical level at 90.00 (see below).
- EUR/GBP, stop-loss sell orders below .8465.
- AUD/USD, bids were reported on Friday to be very solid near .9550.
Hi Sean,
Looks good for your EUR/GBP short. Recent IMM data shows an interesting divergence in EUR and GBP positioning. While EUR shorts mostly covered, GBP short positioning remained quite stable. http://twitpic.com/cxlp80
I view this as following: USD strength is likely to return soon and IMM positioning indicates that while GBP-short remains quite a crowded trade, there is enough room for building fresh EUR short positions. While the risk of s/t GBP-short squeeze exists, the diverging economic data should add further pressure on the Euro.
Good evening Sean,
From your information : “AUD/USD, bids were reported on Friday to be very solid near .9550.”, we could play this trade : buy dips at .9550 on AUD/USD with tight stop under .9500 ?
I’m on it already Papillon, I bought 9570 and 75 and will reduce below 9530
Ok, you have already added ! You are in form today 😉 . I will try out this trade.