We got a taste of how this market is trading yesterday during the Asian session when the AUD/USD based at .8240 and rallied even while the EUR and cable fell. Those who had managed to get short close to the top were more than happy to book their 150 pips profit and shorts started feeling nervy. Exactly the same scenario played itself out in the EUR/USD overnight when solid buying interest at 1.4210/20 based the market, encouraging shorts to cover and eventually chase the market. I am not reading anything much into these up-and-down movements- merely a very clear signal of market indecision.
There should still be some decent movement in the JPY crosses today before the election weekend although I’m sure most of the stop-hunting has already been done overnight.
Good luck today.
