The only pair to break new ground yesterday was the AUD/USD, which sped through stops above the previous high at .8263 and has now retraced to that level, which will now form the first level of support. EUR/USD again failed around 1.4300 and seems to me to be getting tired. Cable is, in my totally biased view, showing increasing signs of weakness after a failure to break above 1.6585 and trigger stops yet again. That said, I wouldn’t be jumping in with shorts in any of these pairs at least until Europe comes in. Asia has shown a propensity to buy the JPY crosses over the last few weeks and with prices a bit lower this morning, I suspect they may so the same again today.
China has been seen on the bid in the EUR/USD and they will have a much larger impact in relatively thin Asia markets. Shorts in the AUD/USD will be happy to cover close to the aforementioned .8260 level.
Good luck today.
