AUDUSD – the little train that could NOT!

Well after getting all excited and trying to make some headway above 0.6400, the AUDUSD appears to have given up the ghost for the Asian session with those that bought full of bravado after the RBA rate cut now squaring their positions before they clock off for the day. For a more in depth technical view of the AUDUSD please see the previous post.

As for the EURUSD, not exactly too much excitement to be found there either with it failing to consolidate above 1.2900 and now with any luck heading back towards 1.2500. I will write a complete in depth analysis of the EURUSD tomorrow as there is no rush, it’s not going to be able to sustain any moves higher yet.

And lets not forget USDJPY, well actually we may as well forget USDJPY today as it has traded a very subdued 89.30/90.00 range. It is probably worth paying attention to the CFTC data released yesterday showing the market long record levels of JPY. Lets see how long it takes the elastic band to snap back sharply. It is worth noting that last time the CFTC data showed the long yen position at such levels (October 2008) the USDJPY proceeded to rally 800+ points. Just a little something to keep in the back of your mind. Not to forget that the 5 day MA has now crossed above the 15 day MA…only early days yet but i am looking levels to play from the long side in the USDJPY (short yen).