USD bulls still in control

Plenty of action around the time of the Fed overnight and I’m expecting plenty of volatility today in all of the crosses.

  • USD/JPY did what we expected and pulled back sharply ahead of large barrier protection at 104.00. I’d continue to play the 100/104 range here over the next week or so.
  • AUD/USD looks very heavy indeed after the break below .9700 and it seems pointless to try and fight the dominant downtrend. I’m looking for a .9650/.9750 range today.
  • EUR/USD encountered very heavy selling above 1.2950, including Sovereign players, and a test of important support at 1.2745 looks likely this week given the strong USD sentiment.
  • USD/CHF continues to lead the way higher and will gain fresh momentum if EUR/CHF can break above important technical resistance near 1.2650. I’m staying long.
  • Cable is bearish again after the break and close below 1.5100; I’m hoping for small intraday rallies to exit my long position.
  1. Crazy markets today, huh? Thanks for reminding us of that 97/104 DNT during the past few days! I’ve managed to short it around 103.60, catched a quick 40 pips and looking as well to sell it again once it get’s back above the mid figure.

  2. Yes Milan, I also picked up a nice 65 pips which will help to pay for my poor cable position 🙁 Look to do same again today but maybe sell near 10370/80 now?

  3. Sean, Think it would a good place to go long on AUD/JPY around 99.60 with a tight stop below 99.41 around 99.25 incase we overshoot the downside by a few pips?

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