WITH USDJPY HOVERING JUST BELOW 151.97 IT IS WORTH READING THIS BLOG ARTICLE AS IT IS STILL VALID
Trader Alert: Would I Intervene in USDJPY If I Was in I was in the BoJ’s Shoes?
EURCHF
The pair is in clear Uptrend, and Swissy never looked so vulnerable.
CHF is hit even from the USD , and that is not it’s usual state of affairs.
Resistances come at : 0.98950 , 0.99150 and ultimately The Parity – 1.00000
BOBBY POSTED THIS EURUSD TECHNICAL OUTLOOK IN OUR BLOG AND IT SPEAKS FOR ITSELF. WORTH A READ
DLRx 103.95
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with nothing of substance on the econ calendar todahy players have room to argue things out (i.e. consolidate)
the “better qualified” individuals are suggesting ambivalent things about alleged rate cuts with a bottom line attempt at maybe not quiet three cuts as “feasable” this year.
with 10-yr yield nearing 4.5% dlrx is rather subdued in its response.
In his friday yak jerome alluded to details about labor he & gang are watching such as turfing notices and surveys around jobs intentions – two rays of good hope from the FED’s point of view. The CPI numbers that are expected this week appear to be another ray of hope for the FED as “being on the right track” that earlier numbers were but a “bump”
Degenerate traders on the other hand would likely savage rates and ccies on upside surprise releases.
Since the relationship with currencies to US stocks matters, just a note stocks are firmly in a pull back cycle and I don’t see any way that Dow trades above 392 today unless something dramatic happens. Yields up. Dow futures holding 39170 so it appears the shorter term cycle is the market wanting to hold stocks against the more significant sell cycle in the index. DXY is holding the offer overall so it would take something of weight to move it over 104.60 today in my opinion.
THIS ARTICLE IN OUR BLOG EXPLAINS WHAT IT MEANS WHEN A CURRENCY FEELS BID IN AN OFFERED MARKET
What Does it Mean When a Currency Feels “Bid in an Offered Market?”
eurusd 4 hour chart – glass half full or empty of looking bid in an offered market?
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Given the strong US jobs report and rise in US yieldsw today it would seem more logical for EURUSD to be trading 1.07xx rather than 1.08xx’
It is Monday though and will see if this is a matter of looking bid in an offered market. A break of 1.0791 would be needed to confirm this is the case.
Key levels are on this chart.
USDJPY 1 HOUR – BID BUT WARY OF INTERVENTION
All that matters in USDJPY is the 151.97 (suggests 152) and what night trigger intervention. It certainly isn’t a disorderly market in current conditions that would trigger intervention so it would have to be a level that is considered the point of pain.
Rising US bond yields (4.45% 10-year yield so far capping it) would normally see USDJPY if it wasn’t for the intervention threat.
Looking at this chart, there are layers of support all the way to 150.80 under normal conditions.
A look at the day ahead in European and global markets from Ankur Banerjee (Reuters)
European markets are gearing up for a steady start to the week with the ECB widely expected to stand pat on rates but possibly hint at when rate cuts would likely begin, while investors will parse through the latest reading of the U.S. inflation report.
XAUUSD 1 HOUR CHART – EXHAUSTION HIGH?
I won’t even dare to suggest a high is in although the spike t0 2354 suggests those still short threw in the towel.
With the key support not until 2302, look for 2330 to be a potential support that needs to hold to keep a bid targeting the high.
For those trading XAUUSD intra-day, revert to shorter time frames.
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