I am back with some news prior to the US Open. I know you missed me and probably haven’t been making as much money linked to the lack of my posts. Here we are though:
London has come in to start selling USDs with EURUSD creeping above 1.3600 to the session high of 1.3643. GBP has also gone bid and broke the 1.7005-10 resistance zone. We have also seen some USDCAD selling with a low of 1.0809 so far. USDJPY has also moved to the session low at about 101.75. AUD and NZD joined the party on the European open and are trading around 0.9428 and 0.8726 respectively.
After the expected jitter around the FOMC last night, USDJPY is now flirting with the 200d MA at 101.62. The 50/100/200 MAs are converging closest since December 2013 – which was shortly into a 7 big figure grind higher. The 100.76/104 range we’ve had since February shows no sign of abating. Support around: 101.40 down towards 25. Once it falls down to that we are looking to go long and once resistance is cleared shortly north of 102 the figure, the path is clear to 102.45-50.
Muted reaction to FOMC overnight has seen the London open revert the cross to its pre announcement levels. Negative EUR sentiment elsewhere could reverse this trend.
Support around 137.50, 137 the figure.
Resistance – towards the figure 139.
If you missed the move for short USD it might be too late to look for a lot of points but trading higher volume and looking for a smaller movement is still on the cards. There is money to be made. I have got in buying Sterling as we recommended yesterday and now sitting about 80 points onside against the dollar and 40 against the yen. As for selling the dollar directly, we sold it against the RUB where there is loads of volatility because of the situation in Ukraine and the gas deal. Sitting at 34.2 from 34.8 there. I will wait for some better levels though before I will reverse the trade and go long USD. I like buying it against the CAD and against the JPY once it reaches appropriate levels.
Keep an eye on CHF today.
Good luck trading.