Short term momentum is bearish for the EUR/USD as twilight zone trading commences. The pair fell sharply into the NY 5pm close and if there are more weak stops out there, the card-sharp dealers at work for the next 2 hours will sort them out. A regional Asian central bank which was selling around 1.4250 yesterday is now reportedly on the bid in the low 1.41s (thanks Jamie).
Sterling is holding up a bit better with Chinese buying of GBP/JPY probably driving this. USD/JPY shorts were forced to cover over the last 24 hours after Citibank butted heads with China and came away with a headache. Talk overnight that China was on the offer at 95.30 will add salt to the wounds.
AUD/USD is back towards its previous resistance level which comes in around .8090 today. The offers around .8200 all week have been very large indeed. You need to decide whether to go with the strong technical formation or the big market action. Maybe doing both is best; play the .8090/.8210 range.
Good luck today.
