EUR/USD went back Thursday, testing the 1.25 level for support. It did in fact find it, but at the end of the day we continue to go sideways. We believe that ultimately if we can break down below the 1.25 level, we would be massively bearish. A break down below that level should send this market looking for the 1.2350 level. That area should be somewhat supportive, but ultimately we believe that this market will break down below there. We have no interest in buying.
The GBP/USD went back on Thursday, testing the 1.57 level. The market showed a neutral candle, it’s looking impossible to imagine place a trade at the moment. However, if we see some type of resistant candle above, we would be more than willing to sell this market as the market looks very bearish overall. That being said, we feel that buying this market is impossible until we get above the 1.60 handle. With that, we are very bullish of the US dollar and recognize that it is the strongest currency out there.
AUD/USD fell on Thursday, testing the 0.86 handle. Because of that, we do forming a little bit of a hammer like candle and it suggests to us that we may bounce a little bit. Quite frankly that’s a selling opportunity as far as we can see, and we are going to look for resistive candles in order to do so. With that being the case, we are on the sidelines but we are looking for opportunity to take advantage of value when it comes to the US dollar.
USD/JPY tried to rally Thursday, but turned back around to form a shooting star. The shooting star suggests to us that the market is going to pull back, and quite frankly we look at that as value in the US dollar. We believe that the 115 level below should be massively supportive, so therefore we are looking for supportive candles below in order to go long of this pair as we believe that the market is in a longer-term uptrend. Ultimately, we cannot sell.
Data Update for 21th Nov 2014
|12:00am||USD||FOMC Member Mester Speaks|
|7:30am||NZD||Credit Card Spending y/y||4.40%|
|1:30pm||EUR||High||ECB President Draghi Speaks|
|2:30pm||GBP||Public Sector Net Borrowing||6.9B||11.1B|
|7:00pm||CAD||High||Core CPI m/m||0.20%||0.20%|