EUR/GBP fell back (sadly for me) to its break-up level from Friday at .9025 and this can now be considered another gap closed. EUR/JPY has also fallen back from the flat trendline resistance that we have been alluding to but there is as yet no confirmation that the USD has turned. We might only be seeing some typical cross-rate readjustments which are driving the EUR/USD lower.
Personally I remain of the opinion that the USD will turn bullish very soon but I have been burned on a number of occasions trying to pick a turn in the AUD/USD and the like so I’m holding off for now. If AUD/USD can break below .9050 with a bit of momentum and if cable can break below 1.6225, then I think I should start buying the USD on dips against all the majors, with the possible exception of USD/JPY.
Good luck today.
