The FX market never goes in one direction in a straight line (although cable certainly feels like it sometimes). There will always be pullbacks and then there will be occasional turns at tops and bottoms. We have seen the medium term USD bulls throw the towel in over the last few days and EUR, AUD, NZD and CHF all make new m/t highs against the greenback. But there will always be pullbacks and that is most likely what we are seeing this morning. Nothing much has changed but the USD has obviously fallen far enough for the moment and the market is readjusting.
Intraday traders now get to ply their trade and to try and estimate what the range might be for the upcoming session/s. I heard talk yesterday of strong bids in EUR/USD at 1.4600/25 and with an interim top now at 1.4840, I suggest this might be the range and I will look to get busy as we near these extremities. As we are opening right in the middle of this range, toss a coin for the toe-wetting trade.
Good luck today.
