Liquidity will go from bad today to worse tomorrow. It looks as though much of the month-end requirements have been disposed of today, but in thin markets tomorrow, we could still see frantic volatility.
Technically, it looks as though risk markets are trying to take a turn for the better. AUD, EUR, EUR/JPY…all look like they have bottomed or are close to it.
Traders are struggling with whether to ignore the calendar and believe the charts or wait out the weekend and see where the dust settles early next week. That’s a very tough call, and each will have to make it on one’s own.
1.2416 and 1.2445 are next resistance levels for EUR/USD while 1.2340/45 i s support on dips.
113.20 is next resistance in the ballistic missile known as EUR/JPY. 91.03 is the 200-day Moving average in USD/JPY…
