- USD/JPY has bounced nicely after the stop-loss driven push below 101.00 early last week. I expect sell orders between 102.25/50 to be very solid indeed and further range trading is favoured in the short-term. That said, medium-term bulls will be heartened by last week’s bounce;
- EUR/USD closed last week below previously important technical support at 1.3635 and the path of least resistance from here would seem to be down;
- Cable is also looking somewhat toppy in the short-term and a wide 1.6650/1.6950 consolidation phase would not be at all surprising. Much will depend on what happens in EUR/GBP if it can approach .8000;
- AUD/USD and NZD/USD are not showing much of an inclination to bounce and I suspect that we will see a test of important support levels at .9135/50 in the former at some stage this week;
- USD/CAD is the one exception (how often have we said that over the years 🙂 no wonder it’s called the Loonie!). The market has gotten itself short of CAD across the board at the wrong levels and hence we are seeing the reversals against the EUR, JPY etc.
Have a great week.