The AUD/USD rallied 250 pips from yesterdays lows, 3 %, and this is another example of the markets indecision or unwillingness to stick with USD longs for any period of time. All the sellers from the last few days will have had trailing stops tight above the market and they were subsequently stopped. But I think the market now wants to be short and we may see some more sharp moves lower when short-term sentiment again turns, and it always does if even for a brief period. I’m short here at .9150, looking to sell intraday rallies, with a strategy stop above .9325
GBP has confused me for the 47,364th time in my 25 years of trading cable, GBP/DEM and now EUR/GBP. I’m leaving it alone for the moment as I still haven’t figured out whether it will rally or fall on the crosses. (Did you know that the Irish Pound/USD pair used to be known as ‘the wire’, cos it was a smaller version of a cable).
Good luck today and TGIF.