Poor European PMI this morning lead resulted in a further drop in the Euro, the interesting point on this was not the drop and rapid break through support as if it wasn't there but the immediate reaction of Retail Traders to go long the Euro.
Given that support didn't hold we are surprised by the reaction and suspect that a further drop in the Euro could be on the cards.
Elsewhere US CPI came in better than expected and existing US home sales increased.
Tomorrow will be interesting again for the Euro as we have German Ifo business climate index.
EUR/USD
Euro plummeted past support today dropping heavily after yesterdays loss. Pair is very volatile at the moment. Given the aggressive nature of Retail Traders to jump long we now maintain a Bearish bias below the 1.3285 mark
Personal Bias: Bearish
Support: 1.3140
Resistance: 1.3285
My Strategy: Stand aside, wait for clear signals.
GBP/USD
Pound found some support today, feels like it was a long time coming but it bounced off of support to put in a counter trend pin bar. We suspect we move higher from here but the pair remains a relatively risky trade.
Personal Bias: Bearish
Support: 1.5130
Resistance: 1.5560
My Strategy: Look for sell signals on any retracements higher
AUD/USD
Aussie pushed higher and justified why we think this pair is so choppy and difficult for swing traders. we maintain our Bearish bias but the pair could continue to chop on its way down.
Personal Bias: Bearish
Support: 1.0230
Resistance: 1.0320
My Strategy: Stand aside
USD/JPY
Given the movement in other risk pairs the Dollar vs Yen seems relatively static at the moment, dipped slightly today but still remains well within its range. Key support levels below and resistance above.
Personal Bias: Neutral
Support: 92.00 / 91.00 / 88.00
Resistance: 95.00
My Strategy: Watch key levels of 95.00 and 92.00 for signals.
Given that support didn't hold we are surprised by the reaction and suspect that a further drop in the Euro could be on the cards.
Elsewhere US CPI came in better than expected and existing US home sales increased.
Tomorrow will be interesting again for the Euro as we have German Ifo business climate index.
EUR/USD
Euro plummeted past support today dropping heavily after yesterdays loss. Pair is very volatile at the moment. Given the aggressive nature of Retail Traders to jump long we now maintain a Bearish bias below the 1.3285 mark
Personal Bias: Bearish
Support: 1.3140
Resistance: 1.3285
My Strategy: Stand aside, wait for clear signals.
GBP/USD
Pound found some support today, feels like it was a long time coming but it bounced off of support to put in a counter trend pin bar. We suspect we move higher from here but the pair remains a relatively risky trade.
Personal Bias: Bearish
Support: 1.5130
Resistance: 1.5560
My Strategy: Look for sell signals on any retracements higher
AUD/USD
Aussie pushed higher and justified why we think this pair is so choppy and difficult for swing traders. we maintain our Bearish bias but the pair could continue to chop on its way down.
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Personal Bias: Bearish
Support: 1.0230
Resistance: 1.0320
My Strategy: Stand aside
USD/JPY
Given the movement in other risk pairs the Dollar vs Yen seems relatively static at the moment, dipped slightly today but still remains well within its range. Key support levels below and resistance above.
Personal Bias: Neutral
Support: 92.00 / 91.00 / 88.00
Resistance: 95.00
My Strategy: Watch key levels of 95.00 and 92.00 for signals.
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