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Summary of our Traders Strategies: EUR: Conviction is high again that we are heading lower, bias is to be short and add on any pop up towards 1.0690. JPY: I anticipate further dollar strength but USD/JPY is likely to be a laggard unless the BOJ does surprise, bias is to hold a broad core dollar exposure but not to overload towards recent highs. Support now 122.80/123.00 whilst a close above 123.60 suggests 124.50/125.00 could be on the cards.
Big difference in the feel of the market this morning verse where we were yesterday. The move off the lows in equities looks powerful and Id argue odds favour them going higher from here. As that was my biggest worry yesterday against the short Eurusd trade, Im now a lot more confident that we will continue to trade lower in the short term as well. US CPI the main event today followed by the FED minutes tomorrow. Conviction is high again that we are heading lower, bias is to be short and add on any pop up towards 1.0690. Spot reference: EURUSD 1.0648 |