The euro continued to sell off as the pressure of new, aggressive quantitative easing from the ECB weighed down the currency. We see dollar strength but we don’t know if price can continue to move higher for the dollar. Equities recovered slightly from Wednesday’s sell off. With nonfarm payroll tomorrow, we could see a worse than expected jobs report which could push equities down and money into the dollar.
The EUR/USD continued to fall, pushing to multi-year lows. The anticipation of price hitting parity is increasing. Timing a short is going to be the tricky part. We are going to watch for price to rally or at least trade sideways before we look to short this pair again.
(see EUR/USD below)
The GBP/JPY bounced slightly and we still expect a bigger drop to test the 38% Fib or lower for our next bullish trade. We will wait for the test before we set our buy order.
(see GBP/JPY below)