• EUR/USD is in the midst of a constructive bull move. The first leg was 1.30/1.37 and we are now in the second bullish phase which I expect to run out of steam towards 1.42. Look to book long profits on rallies and reset longs on dips back towards support, which should be firm around 1.36.
• USD/JPY as I’ve blathered on about for months is in a 92/102 range. Prefer buying dips from current levels at 94.80. EUR/JPY is going to 150, buy dips!
• Cable and EUR/GBP: I don’t have any great feel for the cable I’m afraid and I prefer to trade it on a really short term timeframe, trying to pick up 80/100 pips. EUR/GBP I am looking to sell rallies back above .90 for another move lower, perhaps into the .70s again.
• AUD has worked through its oversold status. I prefer to buy dips against the USD for the moment, with a broad .73/.83 range likely to contain. As I wrote yesterday, I think there may be a great opportunity to build a short AUD/JPY position when the present rally runs out of steam (somewhere between 80/85 I’m guessing).