It’s pointless looking for logic once big asset manager month-end flows hit the market; they deal regardless of price or trend and once the dust settles then the market can get back to normal.
- Pairs like NZD/JPY were harshly treated towards the end of the week and now we must see whether the market can reverse those 2.5% losses.
- The AUD has already started a mini recovery after stronger-than-expected China manufacturing PMI data was released over the weekend and the big levels to watch in the AUD/USD are .9525/.9700.
- Cable tested and held the neckline of it’s double-bottom and I have increased my long position there with an obvious stop-loss level now below 1.5130.
- EUR/CHF looked quite soft at times towards the end of the week but strong bids at 1.2370 are holding this pair for now.
Good luck this week.