U.S. equities started the week down in what appeared to be a test of a breakout of short term support but equities, as we have seen repeatedly over the last few years, rallied and closed positive. The U.S. dollar traded relatively flat for the day. The upcoming FOMC statement, Advance GDP and nonfarm payroll this week could add significant uncertainty. Advance GDP was revised lower to -2.9%. The last revision lower into the negative occurred 4th quarter of 2008.
The EUR/USD traded up slightly today after a solid break out to the downside on Friday. Bearishness is likely to continue for this pair unless the FOMC changes its stance of tapering and ending the purchasing program in October. We are still watching for a new short opportunity.
(see EUR/USD below)
The NZD/CHF edged lower but is showing signs of slowing and even possibly putting in a higher low. We will watch this pair tonight for an exit with a small gain while watching for a similar small gain or small loss trade on the GBP/CHF as well.
(see NZD/CHF below)
The GBP/CHF is holding at near term support but we haven’t seen the bullish run we expected. We are looking or an exit on these two Swiss franc crosses, as neither one are moving. We will watch it tonight and may exit early tomorrow.
(see GBP/CHF below)