Range trading, apart from the GBP
- EUR/USD is in sideways consolidation below 1.1500. The market remains bearish. Only a break above 1.1550 will change the outlook.
- USD/JPY also in consolidation mode between 116/120 and there seems little point in trying to pre-empt the next medium-term move. The market is still very bullish on USD/JPY but cautiously bearish on crosses like EUR/JPY and CAD/JPY.
- AUD/USD is stuck between .7750/.7850 in the short-term and these phases normally end with a move in favour of the dominant trend (bearish in this case). Nevertheless, ever the contrarian, I’m long at current levels and hoping that a bottoming pattern emerges.
- The GBP continues to make gains on the crosses and EUR/GBP has almost reached what seem like longer-term equilibrium levels near .7200. If the USD does suddenly turn for any reason, I expect the most significant move to come from GBP/USD.