A very quiet start to proceedings in the interbank market. EUR/USD is trading at 1.2650 and USD/JPY at 98.30, very close to Fridays closing levels. There were no major announcements or developments over the weekend. There are also no major levels nearby to encourage dealers to run stops. Here is the economic calendar for the week ahead.
My trading bias is as follows: USD/JPY- medium term range 92-102 and I will only enter as we near the edges. AUD/USD- .6280/.6560 is the well defined range and it might be worthwhile trading a break as there should be tonnes of stops either side. EUR/USD- drifting lower in a fairly flat trend channel but I have no real feel for entry/exit levels. USD/CHF- as you no doubt know, I am long and bullish for a move to 1.29ish in the first instance. GBP- overall the pound is heavily oversold and I think that it will appreciate, especially on the crosses but buy deep dips only (like 130 in GBP/JPY or 1.58 in GBP/CHF).
Good luck today.
