While the currency market took a break yesterday, XAGUSD had the best day out this year to surge ahead to lead the pack.
One thing is clear for sure, USD has already started to trend lower again except against the JPY (always a different animal, have you not noticed by now, hello??)
Price action in the E$ in the past 48hrs suggest strong underlying strength as every dip was brief and rebound sharp.
Despite stop loss orders built up below 1.3360, that region was not threatened.
Expect the range to tighten to 1.3400-1.3480 during Asian hours, 1.3340/60 news induced. The breakout may not happen but one has to start long positioning today. A monthly close above 1.3400 would be a bullish signal.
Risk/Reward (R/R) favours buying dips as I foresee 1.35/36 tested by this week.
Noteworthy events:
- YPO's Global CEO Summit starts today in Singapore!! (Irrelevant)
- ECB LTRO
- Fed Chief Bernanke speaks
- Beige book
- Month end close
Enjoy today, it takes 4yrs to get this day on the calendar!
"Trend is your friend, emotion is your foe"
"Greed is good, discipline is better"
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