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.