The big EUR sell-off has taken a breather and the AUD also took a rest overnight with both currencies making gains against previously stronger currencies like the GBP and the JPY. This is typical FX market fare, where the market gets itself heavily positioned and then readjusts or consolidates once momentum starts to wane.
EUR/GBP triggered large trailing stops above .8100 and the next big level to watch will be 1.2520 in EUR/USD, where heavy trailing stops are reported. Don’t get too excited though, the same quantity of stop-losses were reported last week above 1.2625 and the market couldn’t get above 1.2624!
The big event this afternoon will be the RBA, with most analysts tipping a 25bps rate cut and some even tipping a 50 bps cut, after the recent bloodbath on equity markets.
Good luck today.
