I tend to believe that we are in the midst of a big cross move which will involve a weakening in major currencies like the EUR and the GBP, but also the USD, and a strengthening of commodity currencies but also Asian currencies in general. It seems that Asia is the only place which is showing decent growth potential without borrowing money it can’t afford.

We’ve gone through the sell EUR/USD, sell cable phase, and now I think we will see the other ‘leg’ of the cross moves i.e. higher AUD/USD, lower USD/JPY etc.. The follow through on the EUR/USD and AUD/USD on breaks above 1.37 and .9070 has been a little disappointing but I still believe that there’s more to come.

Good luck today.