Equities fell most of the morning but was able to rally, offsetting the loses and closing near the high for the past three days but unable to close at a weekly high. The dollar was able to maintain its strength in spite of the big equity rally. Gold fell off and oil topped out. We are expecting another pull back equities and another rally in the dollar but we do expect some volatility in the next day before risk aversion kicks in.
The EUR/USD edged down slightly and stalled. We still have an expectation of a small bounce before price will likely continue to move lower. The dollar is acting as the safe haven currency across the markets.
(see EUR/USD below)
The USD/JPY fell lower with the markets drop and rallied with the markets rally to close relatively flat today. We are still watching for price to drop and pick up our bullish entry at a support level and a 200 day moving average entry as well.
(see USD/JPY below)
The GBP/AUD rallied and tested the area where we are watching for confirmation of a close above 1.7885 which we did not get today.
(see GBP/AUD below)