Clearly a nervous and listless market as evidenced by last night’s moves. Case in point was the quick blip we saw on screens around 17.30CET last night which drew more USD sales and saw the EURUSD and Cable in particular much higher and very quickly. What was behind this I hear you asking…. You wouldn’t believe it, but it was news (if it can be called that) that 2 Iranian naval ships were seen at the opening of the Suez Canal and were awaiting permission to enter. Now the fact that these 2 ships were going to be in the vicinity was already known on Monday, however practically no reaction seen, but all of a sudden on Wednesday night this becomes a market moving event
… Figure it out for yourselves. The point that I’m trying to make is that the market has a clear predisposition at the moment for selling the USD and will look for any excuse to do so.
I refuse to look at genuine macro or economic fundamentals which could drive this market, because in all honesty the market is ignoring them, so why should I care. If I were to care I would be poorly positioned and the ultimate contrarian in the market because we’re trading completely irrespective of these principles. Another case in point, last night’s FOMC minutes, the market chose to completely ignore and trade away….
On the day, data wise we have weekly jobs data from the US as well as core CPI, beyond that little in the G10 pairs that will prove to be market moving.
In regards to levels today, I think I’ll look at orders instead.
EURUSD has good bids around the 1.3550 area with reasonable stops just below and more bids into the 1.3500/3480 level. On the topside, good offers into 1.3600, with decent stops above 1.3630 and 1.3650.
The Cable has good bids into 1.6000 with small stops around the 1.5980 level and bigger stops into 1.5950.
The AUDUSD has bids into 0.9980 with stops below, while the topside has offers covering the market at 1.0100/30 for the time being.
… Figure it out for yourselves. The point that I’m trying to make is that the market has a clear predisposition at the moment for selling the USD and will look for any excuse to do so.
I refuse to look at genuine macro or economic fundamentals which could drive this market, because in all honesty the market is ignoring them, so why should I care. If I were to care I would be poorly positioned and the ultimate contrarian in the market because we’re trading completely irrespective of these principles. Another case in point, last night’s FOMC minutes, the market chose to completely ignore and trade away….
On the day, data wise we have weekly jobs data from the US as well as core CPI, beyond that little in the G10 pairs that will prove to be market moving.
In regards to levels today, I think I’ll look at orders instead.
EURUSD has good bids around the 1.3550 area with reasonable stops just below and more bids into the 1.3500/3480 level. On the topside, good offers into 1.3600, with decent stops above 1.3630 and 1.3650.
The Cable has good bids into 1.6000 with small stops around the 1.5980 level and bigger stops into 1.5950.
The AUDUSD has bids into 0.9980 with stops below, while the topside has offers covering the market at 1.0100/30 for the time being.
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