It’s interesting to read Jamie’s take on overnight proceedings which he sees as being mildly USD-positive whereas when I look at what happened overnight, I see nothing but bearish USD signs. That’s the beauty of the FX market, everyone sees the exactly the same evidence but comes up with a different conclusion.
The failure of USD/CHF to break back above .9320 is an important event in my view. USD/JPY also tried to break back above short term resistance but couldn’t even manage that. Cable broke above previous strong resistance at 1.6280, USD/CAD held below yesterday’s breakdown level at .9750 and EUR/USD short-term support near 1.3770 held. Gold reaching new highs is another USD-bearish sign.
Admittedly EUR/USD does look toppy in the short-term at 1.3860 as does AUD/USD at 1.0200, but the main signs still indicate to me that the danger side for the USD is down. Though I have been wrong before.
Good luck today.
