Friday was a tame trading session in comparison to the day before. The markets still digesting what it means for the Fed not to slow the QE3 ship down. What it will do is make the US economic figures scrutinised and volatile since Uncle Ben has firmly tied the QE3 tapering to jobs and inflation. So, expect choppy conditions ahead for the US$ as it bounces from one headline to the next.
DATA HIGHLIGHTS TODAY – Japanese Holiday. Chinese French and German Manufacturing PMI. ECB Draghi speaks.
AUDUSD – Slipped back under support and is being held under that this morning. Some Chinese data could give the Aussie a spark, but I see it heading lower as sellers dominate the last two sessions.
EURUSD – With Merkel winning the election, the euro liked this and has strong bid under it. Not certain enough of its own support though and I see this as choppy times ahead with a leaning to the downside.
GBPUSD – Is trending back to its ema and support levels after its overextended run up, 150pips shy of the long term target I had and resistance at 1.63. Still could get there if more buying interest steps in off support at 1.5755.
NZDUSD – Another overextended currency that should retrace back to its mean and support levels around 81cents.
USDCAD – A nice swing low and back above resistance has me interested for 2nd trade as it has confirmed my first entry last week on this.
USDJPY – Still faffing about with no clear direction.
GOLD – Large seller bar of all things. Not just a seller bar, bearish as it closed on its low. Confusing so will leave it alone.
David Long/ Proprietary Trading Manager