The twilight zone has so far brought a 30 pip fall in USD/CHF with the other majors fairly stable. Option protection is now the major player in the market with 99.50 in USD/JPY becoming the latest in a line of ‘defended levels’. AUD/USD is dominated by exceptionally heavy protection of .6280 and .6560 by a major Asian player. The buying yesterday was massive and the selling promises to be equally so, should we near that level. Keep stops tight, as when the range breaks, we should see some big moves.
News out of China will now be carefully analysed as the market tries to find some hope in the East.
Good luck today.
