Happy Halloween and end to an interesting, volatile October. Today, equities rallied on solid earnings and very hawkish tones from the Fed. Equities have rallied 8 of the past 11 days. The dollar has gained with equities which is a sign of money moving into the U.S. markets from overseas. We are watching for the dollar to break annual highs followed by a move to the 5 year highs which would be an additional 3% move in the dollar.
The EUR/USD dropped today, falling more than 90 pips before rallying closing down only slightly. We are still watching for price to rally and create a lower high for a bearish trade opportunity.
(see EUR/USD below)
The CHF/JPY is clawing its way to test the 61% Fib level for a potential short opportunity. We will watch for price to slow near this level.
(see CHF/JPY below)
The AUD/CAD continues to trade up against the Fibonacci level resistance. We are still watching for price to push through near term resistance and test the higher Fibonacci level to set up for a short opportunity near 1.0027
(see AUD/CAD below)