Equities traded flat today and the dollar pulled back slightly. The markets may be going into a holding pattern ahead of the holiday weekend. We are watching for equities to provide a little pull back as the AUD/ JPY pulled back hard today and this can be an indication of increased fear and volatility.
The EUR/USD edged slightly higher today and is testing the 61% retracement of the very near term downward movement. We are watching for price to return to a downward trend as the ECB is still discussing easing policies. We will watch for an opportunity to add to our current short position.
(see EUR/USD below)
The CHF/JPY traded flat today and could be setting up for a lower high followed by a drop to 119.22 , if not lower. We want to exercise some caution on this short as volatility around this resistance area stopped us out when we were right about the direction. We will watch for an intraday short opportunity.
(see CHF/JPY below)
The NZD/CAD sold off hard today, dropping through our stop and setting us up for a breakout of the price pattern. Price cleared the trend line by more than 20 pips and we shorted this pair. Price pulled back within this previous price pattern to finish the day but we are still watching for price to clear the lows and continue.
(see NZD/CAD below)