EUR/USD dips below 1.0600 again; USD/JPY eyeing 113.00

Tentative moves in some of the key majors, with EUR/USD getting pressed lower into the mid 1.0500’s again in tandem with a USD/JPY move through 112.50.

Month end flow suggests some USD selling into tomorrow’s London fix, but broader sentiment remains that of using any USD dip to reload on longs. EUR/GBP buying also looks to have receded a little, having stalled comfortably ahead of 0.8600.

Buying of Europe (central bank) is usually transacted over a number of days, so we do not rule out sporadic spikes in the cross rate near term. Beyond this, the downtrend remains very much in place, but little room conceded on the upside as yet, so we still remain wary of a short squeeze either side of the Italian referendum. AUD/USD is still eyeing .7500+, with NZD/USD hovering below .7100.

AUDUSD Morning ‘Supply’ Trade

Supply came in on AUDUSD (circled area), got a nice pullback and squeeze to break the previous session low and go to our LT1 and LT2 targets (127.2 and 141.4 extensions of previous sessions high & low.
18 pips. Not brilliant, but good enough.

AUDUSDM5

The blue horizontal lines are major option levels on AUDUSD at 0.7750 (520 mln) and 0.7800 levels (418 mln)

Friday 20 Feb Trades

Bit of a rubbish day for me guys. Not helped by me being ill in the night so woke late, and missing any decent early morning positioning.

Hopped onto the AUDUSD far too late, but thinking ‘ the big boys’ would have a quick pop at liquidity above the market, so did that for about 8 pips, as sure enough they did after a slow tedious grind upwards.

AUDUSD

Bored of that I hopped onto USDJPY, as it pulled back and rejected the ‘inside low’ and traded it to the previous days low (red line) for about 20 pips.

USDJPY11

As you would expect that level got a reaction (and I was stopped out) but USDJPY in fact traded all the way down to the previous weeks low.

I know some traders on Twitter really cleaned up on the EURO trades, but I was determined to steer clear because of the Greece talks, its a thin line between whether trading or gambling, when active in the markets during major news events.