Interesting day today - some rather large moves in currency pairs.
A think tank report from the US suggesting the Fed could start up further Asset Purchase next wee,k played on the USD pushing it lower.
We continue to see challenges in the Italian Political situation which the euro is really not keen on, and a new Pope has been chosen.
Aussie Unemployment rate and Employment Change overnight came in much better than expected, providing a boost to the pair, the switch in the short / medium term order book now offers some interesting value on short options. The euro area unemployment continues to be challenging.
The U.S. continues to highlight its recovery with better data on the Continuing and Initial Jobless claims today. The Think Tank report and various stops which were hit, pushed for a more generic old style risk on theme, pushing the USD lower and every other pair higher.
EUR/USD
The euro tested the 1.2920 support level again and continued to find support. Each push lower is likely to clear out stop,s and with the long term order book now pointing to longs, we could easily see a pop higher before a move lower.
Personal Bias: Bearish
Support: 1.2960 / 1.2925
Resistance: 1.3000
Strategy: Look for short opportunities on any failed tests of resistance on the 4hr chart.
GBP/USD
The pound continued to find lower support today, and pushed higher off of some nice counter trend lower price rejections.
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Our strategy remains the same, but we will look for short options around the 1.52 mark, offering a better risk reward. Our in house Order Book bias system RTAS booked its GBP/USD shorts toda,y awaiting a new clear entry signal.
Personal Bias: Bearish
Support: 1.4865 / 1.4800 (monthly support)
Resistance: 1.5000 / 1.5190
Strategy: Look for sell signals on any retracements higher; blue area offers good value.
AUD/USD
The Aussie has pushed higher again, breaking key resistance levels. We remain Bearish this pair and continue to like shorts below the 1.0450 mark, a break of this level would change our bias.
Personal Bias: Bearish
Support: 1.0215
Resistance: 1.0400 / 1.0450
Strategy: Looking for short options on a higher price rejection
USD/JPY
Continued to consolidate on USD weakness only just matched by yen weakness.
Personal Bias: Neutral to Bearish
Support: 94.50
Resistance: 100 ... maybe
Strategy: sidelined - wait for clear entry signals.
EUR/GBP
Interesting setup in the Euro Pound as it tested highs today. We could easily see a move lower from these levels and our Pin Bar Scanner has offer a good risk reward ratio. Pair continues to play out well, and we now look to book profit just past lows with a runner in play - position now 100+ pips in profit.
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