- USD/JPY: Lot of people getting very bullish this pair on the back of potential central bank policy divergence but all we have heard so far is bluster, and no actions to follow it up. Recent history suggests that this pair is in a 100/105 holding range and I’m sticking to this.
- Cable: Has been the leader for many months and after a solid retracement/consolidation, technical indicators suggest that a short-term bottom may be in place. I think this could be the trade again and I’m happy to start buying again.
- USD/CAD: Another pair which has been consolidating and is trying to make its mind up. It’s certainly possible that the uptrend reignites but risk-reward suggests to me that I should be selling this rally. If it starts trading on the 1.11 handle then I will need to re-consider.
- AUD/USD: We are in sideways consolidation and the market is split down middle as to whether we see .85 or 1.00 next. I’m in the latter camp, I think we are within 1% of a base (.9150ish at most) and we will soon start to break higher.
Early September is traditionally the moving period for FX markets so it’s time to start picking your side!