E$, the new USD...

Good morning friends! Market provided us one of the best trading opportunities as currency pairs broke out of its sleepy range.


However, E$ was caught inbetween crossfire a good part of the day as the EURxxx (EUR crosses) start to get bullish.


Let me explain myself.... eg. as AUD$ & NZD$ were falling, many would expect E$ to weaken along. But it didn't and instead stayed flat to going the opposite direction. This is the result of directional cross play ie. the EURNZD & EURAUD.

For most of today, I would expect counter directional correction with the NZD & AUD staying relatively firmer.


Heard of a barrier option with strike at 1.3000 along with strong demand should hold this level for now. E$ should be range trapped with 1.3055/65 to cap (1.3080/90 news induced).
Though I see the previous low of 1.2973 retested, I am not exactly very bearish the EUR.


For today, unless you are very disciplined, go light on the long side and I maintain sell rally on currencies.


By the way, I do hope you have benefitted from tip on GBPAUD  :)


All the best and have another great trading day (Friday should be more interesting).


Update1: E$ price action suggest strong underlying, probably motivated by the stop loss orders above 1.3090-1.3110. Not surprised if it spikes up later but 1.3130/40 should cap.