- Most of the majors are trading within 10 pips of their NY closing levels from Friday in early interbank trade.
- Cable still looks very heavy and selling rallies back to prior lows at 1.5070 makes good technical sense.
- EUR/USD broke below 1.3000 on Friday but cross demand helped it rebound.
- The CHF weakness is starting to accelerate but EUR/CHF hit short-term technical resistance at 1.2285 (see members).
- The JPY also weakened but the speculative market is still heavily short; range trading still favoured in EUR/JPY and USD/JPY.
- The AUD also remains soft but short-term technical support at 1.0180 and optionality at 1.0150 will provide support this morning.
Conclusion; selling intraday rallies in cable looks like the obvious play and look for range-edges in the JPY crosses for some trading opportunities.