Week Ahead: Correctional Moves And Chop Ahead Of More USD Strength
Littlefish FX | May 19, 2013 05:45PM ET
Expecting a quiet Monday, potentially with some pull back moves followed by some big chop this week.
Could be a really big week for the Pound as well, lots of data and with the GBP/USD pushing lower in May we could see this accelerate back towards the 1.5000 handle.
Also as usual a fair amount of European data out this week especially key German data on Friday.
Overall our strategy remains to hold US Dollar long but we have to highlight that we could be nearing an inflection point here with our order book systems setting up to close their shorts from beginning of May in favour of a short term reversal or bounce (this could easily turn into a sideways chop as well).
EUR/USD
Nice move lower in the Euro last week.
Ichi line cross on the Daily gave a nice clue to the potential for the push lower and our order book systems have been capitalising well on this run lower.
Like most pairs today, Euro also showing signs that it could take a short term correction before deciding whether to continue lower or bounce a little.
Key data could play heavily into this along with the rapidly approaching 1.2780 support level, if this breaks we could see a further rapid move lower.
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