Hard to know what to make of the first part of today’s session as there’s a lot of ‘noise’ going on.
- EUR/USD should be bid-on-dips after last nights rally but whether the dip stops at 1.2320 or 1.2220, I have no idea. By the same token, rallies will also encounter lots of selling and with China thought to be on the offer at 1.2450, any levels close to there should be heavy. Overall looks like a 1.2250/1.2450 type day with a mild bullish bias
- USD/JPY, as I mentioned earlier, I expect to gravitate towards 91.60 as the day progresses simply because many traders are focussing on it.
- AUD/USD, I still prefer the sell-rally strategy but it looks like the rally could have a bit more to go before it runs out of steam. Intraday dips should be limited to the previous .8385 highs. AUD/JPY also looks like it could move to 79/80 before tiring.
- EUR/GBP has stalled on four seperate occasions below .8450, thereby increasing the risk of a short covering squeeze.