EUR/USD getting all excited as retail sales flunk again

| 4 Comments

It’s like a dog that has been kept indoors all day and is now just being let off the lead at the park.

1.3400 is toast as the dollar comes off, we dropped back slightly below 1.3400 but have now gotten a second wind to take us up to 1.3410. Look for mild resistance at 1.3420 and stronger at 1.3440/45.

USD/JPY has knocked another 10 odd pips lower to 102.22 and there’s support here at 102.20.

AUD/USD has buted 0.9300 to 0.9315 while cable is still being shackled by EUR/GBP which has broken to 0.8015. If we test and hold above the July 2013 downtrend resistance and 55 dma then we could confirm the break.

EUR/GBP Daily chart 13 08 2014

EUR/GBP Daily chart 13 08 2014

The euro is free!!

The euro is free!!

Author: Ryan Littlestone

Ryan Littlestone has been working in financial markets for more than 20 years. Wide-eyed, he stepped out of Bank station in London to join LME founding member Rudolf Wolff where he worked his way to the main order desk and brokered customer orders to the LME floor and across virtually every global market. An opportunity to help set up and run a new LIFFE floor operation saw him catch the trading bug and it wasn’t long before the pull of the pits was too great to refuse. He became a ‘local’ and has been trading his own account for more than 11 years.

4 Comments

  1. The thing about euro is that while I intend to close my longs at 1.35 – I remain doubtful that the squeeze will end there – in fact, we could be looking at a figure much higher than that. The reason being – gbpusd is slated to rebound – it should be a strong rebound.
    Nzdusd is also slated for a very strong rebound.

    I suspect, that euro will not be far behind and that implies that 1.35 will not be the end of the rally.

    In the end though, all this does is provide people with better levels to short it at – shorting euro, gbp and nzd near their highs of this year is the way to go – especially closer to fall. Currently, however, I am long in all of these pairs.

  2. I agree with hello 100%!

  3. I’m shorting at these levels, don’t think the party will be a long one. Good luck.

  4. @hello – I agree, the rebound – as far as I can tell – will be capped around 1.36 for EURUSD, took a long at 1.339 few minutes ago, target 1.357.
    About NSDUSD – still keeping my long from last week, took it at 0.845, target 0.865 (many of you may say – and by that I mean the famous @Big Bad John that having targets more than 30 pips is unrealistic heh these days).
    As I stated earlier here, retracement in I_EURX and I_USDX are coming into play, with so many shorts to squeeze – I doubt that big boys (and by that I mean market makers) will play the game so straight forward, but anyway:)
    However, there are other pairs, which hold potential for good profits – still holding GBPCAD short, toked yesterday at 1.837, I also see good potential in CADJPY for upside move.

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