I’m not expecting much volatility on Monday morning but those with early interbank access can nonetheless be on the look-out for some stop-loss hunts which might offer good entry levels:
- USD/JPY: Option expiries at the end of last week were the main factor in prices moving back towards 95.25. I don’t see any major reason to exit the bull train here so buying sharp stop-inspired dips still seems like the obvious play.
- CHF: I’m very glad now that I exited both my USD/CHF and EUR/CHF positions. I’m looking to buy deep USD/CHF dips but I’ll need to be patient.
- AUD/USD may offer the best opportunity tomorrow morning. I still like the sell-rally play here so any 50/75 pip rallies towards 1.0500 are currently looking like good-value sells.
- Cable market is in short-covering mode but we are still in an overall downtrend. Market info suggests that levels near 1.5225/50 could be good short entry points.