Where's All The FX Momo Gone?
Saxo Bank | Apr 07, 2014 11:22AM ET
- It’s hard to find a compelling trend or theme. The weak JPY is now the somewhat stronger yen as Friday’s poor risk-appetite showing seems to be extending into this week.
- EUR/USD has failed to pick up downside speed. The bears may lose heart if the pair can’t hold below the 1.3750/75 zone.
- USD/JPY is pushing down on the key 103.00 area. This must survive in the sessions ahead to avoid a local reversal.
- Commodity dollars aren’t liking the risk-off vibe to start the week (and tend to trade lately on the flipside of the direction in the major European currencies). So 1.10 is the psychological key for USD/CAD and 0.9300 remains in place of resistance for AUDUSD.
EUR/USD
The wily EUR/USD is challenging local resistance up near 1.3750 after trying to break lower late last week in the wake of the European Central Bank meeting.
Source: Saxo Bank
USD/JPY
The ugly risk off environment and stronger bonds since Friday are giving JPY bears fits locally. This 103.00 Ichimoku cloud area needs to hold to keep the focus higher in the coming days.
Source: Saxo Bank
AUD/USD
Remember that 0.9310 was the 100 percent extension of the first rally wave off the lows. But bears need a good drop through the 200-day moving average and 0.9140 flat-line support area to get structural encouragement that the highs are in.
Source: Saxo Bank
EUR/AUD
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Note the strong reversal of Friday’s action coming across the 200-day moving average. This could be a key reversal if it extends over the next couple of sessions.
Source: Saxo Bank
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