Further comments from the G7 today sparked further spikes in currencies although the day was far quieter than yesterday.
Morning saw the BoE inflation report and Governor King speaking. The British pound featured in his comments, possibly pointing to further stimulus above the 2% inflation target if required. Bias on the pound at the moment is strictly to the downside, and the pair continues to look heavy.
There were also comments today from the ECB about concerns on the high euro, and further comments from French officials on the high euro not helping them out.
It has been a quiet day in general, although was rather quiet and markets consolidated quite a bit. Even US retail sales failed to spark any volatility coming in around expectations.
We could see some volatility in the Yen crosses after the BoJ Monetary Policy meeting tonight.
EUR/USD
The euro put in a pin bar today but the risk vs reward ratio is tight, and therefore is not a signal I am that keen on, but I wouldn't be surprised to see the pair drop from here.
Personal Bias: Bullish
Support: 1.3300
Resistance: 1.3500 / 1.3650 / 1.3710
My Strategy: Look for buying opportunities on a retracement and rejections off of support to the 1.33 mark.
Potential pin bar today could offer shorting opportunities, ensure you are able to obtain your risk reward ratios with this trade.
GBP/USD
The British ound dropped again today following comments from King about the inflation target not being the most important concept, and that potentially they would increase stimulus above target if required.
Personal Bias: Bearish
Support: 1.5630
Resistance: 1.5825
My Strategy: Look for sell signals on the 4hr chart to enter short aiming for the 1.5300 mark.
AUD/USD
Aussie retraced yesterday's losses again pushing towards the 1.0400 mark.
I am now looking for sell signals on a test of the previously strong support level now turned resistance.
Personal Bias: Bearish
Support: 1.0310 / 1.0285
Resistance: 1.0400 / 1.0460
My Strategy: Look for sell signals on failed tests of resistance around the 1.0400 mark.
USD/JPY
The USD/JPY pair is looking toppish again: the current weekly candle looks decidedly Bearish (if it closes in its current form,) and our sentiment indicator has been on the sidelines now as long term current bias is Bearish as well. I will keep an eye on this pair looking for sell signals, short or medium term changes in our bias system might also offer good short opportunities.
Personal Bias: Neutral to Bearish
Support: 92.00 / 91.00 / 88.00
Resistance: ??? - not sure there is any...
My Strategy: Key to wait for a good short entry signal but starting to eye possible short entries. Let's see what the BoJ and G7 comments bring to the table, they might provide a catalyst one way or the other.
Morning saw the BoE inflation report and Governor King speaking. The British pound featured in his comments, possibly pointing to further stimulus above the 2% inflation target if required. Bias on the pound at the moment is strictly to the downside, and the pair continues to look heavy.
There were also comments today from the ECB about concerns on the high euro, and further comments from French officials on the high euro not helping them out.
It has been a quiet day in general, although was rather quiet and markets consolidated quite a bit. Even US retail sales failed to spark any volatility coming in around expectations.
We could see some volatility in the Yen crosses after the BoJ Monetary Policy meeting tonight.
EUR/USD
The euro put in a pin bar today but the risk vs reward ratio is tight, and therefore is not a signal I am that keen on, but I wouldn't be surprised to see the pair drop from here.
Personal Bias: Bullish
Support: 1.3300
Resistance: 1.3500 / 1.3650 / 1.3710
My Strategy: Look for buying opportunities on a retracement and rejections off of support to the 1.33 mark.
Potential pin bar today could offer shorting opportunities, ensure you are able to obtain your risk reward ratios with this trade.
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GBP/USD
The British ound dropped again today following comments from King about the inflation target not being the most important concept, and that potentially they would increase stimulus above target if required.
Personal Bias: Bearish
Support: 1.5630
Resistance: 1.5825
My Strategy: Look for sell signals on the 4hr chart to enter short aiming for the 1.5300 mark.
AUD/USD
Aussie retraced yesterday's losses again pushing towards the 1.0400 mark.
I am now looking for sell signals on a test of the previously strong support level now turned resistance.
Personal Bias: Bearish
Support: 1.0310 / 1.0285
Resistance: 1.0400 / 1.0460
My Strategy: Look for sell signals on failed tests of resistance around the 1.0400 mark.
USD/JPY
The USD/JPY pair is looking toppish again: the current weekly candle looks decidedly Bearish (if it closes in its current form,) and our sentiment indicator has been on the sidelines now as long term current bias is Bearish as well. I will keep an eye on this pair looking for sell signals, short or medium term changes in our bias system might also offer good short opportunities.
Personal Bias: Neutral to Bearish
Support: 92.00 / 91.00 / 88.00
Resistance: ??? - not sure there is any...
My Strategy: Key to wait for a good short entry signal but starting to eye possible short entries. Let's see what the BoJ and G7 comments bring to the table, they might provide a catalyst one way or the other.
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