Like I said this morning, I have a feeling that something big is about to happen and that we have a lot of vol headed our way. I’m not sure which direction, but I closed my medium-term positions in EUR/CHF, EUR/GBP and EUR/CHF.
Now I’m getting the sense that the market is possibly long of the USD up to its neck and that we may be about to see a reversal?
- USD/CHF seems to be turning lower;
- cable rallied after poor UK data;
- USD/JPY options market is screaming at us;
- AUD/USD looks to have put in a base;
- and USD/CAD is reportedly very heavy above 1.0300.
That’s a lot of signals seemingly telling us that the USD is topping out, in short-term at least?