Yesterday was a clean out day. Trailing stops in the EUR/USD and AUD/USD were triggered in Asia and again in early Europe but the commodity currencies have come back particularly strongly. AUD and CAD have posted new near-term highs against the USD, as has the GBP, all after quite heavy falls in the early part of the day. This is generally a very bullish sign. EUR was hit with some negative sentiment yesterday and may underperform for the rest of the week as bruised bulls nurse their sores.
Now with stops out of the way and the geo-political distraction from North Korea also written into the market, I suspect that the USD and JPY may be in for more losses.
Good luck today.
