Now that Bernanke has straightened things out, I can only imagine we are left with the Japanese upper house election as the next major event risk, overshadowing the G20 meeting over the weekend. The relationship? Not too much in the USD against the world but attention will shift towards the xxxJPY which will have indirect impact. The textbook play should be buying USDJPY for Abe's victory but how the market pans out subsequently will depend largely on how much that has been factored in by Friday's close.
Europe order book:
Stop loss: 1.2990, 1.3050-40, 1.3065, 1.3080 and 1.3210
Limit: 1.3060/50, 1.3150, 1.3170-90, 1.3210 and 1.3250/60
Primary trend: Bullish
Intermediate trend: Range between 1.2800 to 1.3200/50
Minor trend: Mildly bearish
Technically, shorter intraday indicator is in o/b zone but longer ones around mid level. Intraday momentum indicator suggest consolidation and at current level of 1.3136, there is more downside bias.
Along with other technical signals, I still prefer to fade into rallies. Expected trading range 1.3170/90 to 1.3000/20. Its Friday, stay nimble, try to take as much off the table and enjoy your weekend.
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| E$ Daily chart - Potential price action for today.... |
The deeper "B" wave has unfolded in USDJPY and topped off at 100.86 before a quick correction lower. However, I am still not very convinced that USDJPY is ready for sharp sell-off just yet before another attempts for 101.53 and 103.73 which will be dogged by some choppy price action, as witnessed earlier. Staying out of this pair ahead of major risk event.
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| USDJPY Daily chart - Possible scenarios... |
Firmer EURAUD for 1.4400 implies softer AUDUSD in the coming trading session. Expect AUDUSD to fall back to 0.9020/30 with 0.9200/20 to cap.
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