USD: Bearish momentum starting to accelerate
The AUD/USD is leading the way again as a new trading week gets underway and those who have missed out on the move might get some more joy by focusing elsewhere. Cable is underdone in my biased view and has some catching up to do. There is always the risk of some Brexit headlines knocking the GBP on the crosses but it is a risky business after all.
I’m trying to trade the upswings in cable and any 50 pip dips are buying opportunities whilst this bearish USD momentum holds sway. I’m expecting this 1.2410/20 level to provide some short-term resistance and dips towards 1.2360/70 are now buying zones. I feel that we will see levels near 1.28 before too long.
AUD/USD is headed to .73c in my view but this may take some time. Patience required.
EUR/USD has the potential to really hurt some of the big shorts out there but personally I feel a bit nervous about being overly long and I prefer to look elsewhere. Similarly with USD/JPY; it will head towards 100 eventually but the market might already be too short the JPY crosses.