And welcome to a market in which the EU summit cried wolf just one more time. Many in the market had priced in the mother of all solutions to come from yet another summit held at the tail end of last week, but alas, most were sorely disappointed as yet again nothing concrete (at least in my eyes) was determined at the conclusion of the meeting of the mutual admiration society.
Risk as many have now come to know it (USD complex) is now looking to be firmly off the cards pending the next headline and in reality with where we are on the calendar, there is likely to be little to save those bulls at the moment. Traders walking in this morning are faced with yet another hard question, do I bother getting involved now, or simply pull up stumps and watch the mess unfold in the remaining trading days of the year. The data calendar today is light to say the least and most will be looking for follow up rhetoric and jawboning from various Euro officials for the next 30 point move in any major pair.
As far as levels are concerned, this week like the last few should see some (sceptically written) USD sales to start the week, however these will be rather short-lived in the face of diminishing belief in a positive global outcome. Thus for choice most will be looking at buying USD on the whole and the majors look a little like the following;
EUR/USD:
This pair is most definitely toppish around the 1.3450 area (should we even see it there) and rally faders will have their offers firmly stacked into that area. Better bids come in at the 1.3180 level with 1.3250 pivot and stops below the main target for sellers this morning.
AUD/USD:
I like the little battler lower and so does the market by the look of it. The 1.0285 area (again like above in the EURUSD) is where offers are lined up and 1.0050 for the time being becomes the psychological pivot and most immediate support of any real note. Sellers are everywhere at the moment.
USD/CAD:
Now this seems far away at the moment but good bids into the week should reside around the 1.0120 area and further down into 1.0030, with some stops sitting into 0.9930. The topside however is the key in this scenario and if we can decisively break and close above the 1.0280 area then the next obvious target is 1.0480.
GBP/USD:
Trading much like the EURUSD however far uglier, especially in light of Cameron’s most recent treaty veto. Cautious sellers are around the 1.5710/30 area with stops above 1.5815, looking for an initial test and possible break of the 1.5550 support area.
EUR/AUD:
Understandably trades with a purchasing bias, with bids in and around the 1.3040 and 1.2990 areas, looking for a retrace into 1.3300 and possibly higher.
Risk as many have now come to know it (USD complex) is now looking to be firmly off the cards pending the next headline and in reality with where we are on the calendar, there is likely to be little to save those bulls at the moment. Traders walking in this morning are faced with yet another hard question, do I bother getting involved now, or simply pull up stumps and watch the mess unfold in the remaining trading days of the year. The data calendar today is light to say the least and most will be looking for follow up rhetoric and jawboning from various Euro officials for the next 30 point move in any major pair.
As far as levels are concerned, this week like the last few should see some (sceptically written) USD sales to start the week, however these will be rather short-lived in the face of diminishing belief in a positive global outcome. Thus for choice most will be looking at buying USD on the whole and the majors look a little like the following;
EUR/USD:
This pair is most definitely toppish around the 1.3450 area (should we even see it there) and rally faders will have their offers firmly stacked into that area. Better bids come in at the 1.3180 level with 1.3250 pivot and stops below the main target for sellers this morning.
AUD/USD:
I like the little battler lower and so does the market by the look of it. The 1.0285 area (again like above in the EURUSD) is where offers are lined up and 1.0050 for the time being becomes the psychological pivot and most immediate support of any real note. Sellers are everywhere at the moment.
USD/CAD:
Now this seems far away at the moment but good bids into the week should reside around the 1.0120 area and further down into 1.0030, with some stops sitting into 0.9930. The topside however is the key in this scenario and if we can decisively break and close above the 1.0280 area then the next obvious target is 1.0480.
GBP/USD:
Trading much like the EURUSD however far uglier, especially in light of Cameron’s most recent treaty veto. Cautious sellers are around the 1.5710/30 area with stops above 1.5815, looking for an initial test and possible break of the 1.5550 support area.
EUR/AUD:
Understandably trades with a purchasing bias, with bids in and around the 1.3040 and 1.2990 areas, looking for a retrace into 1.3300 and possibly higher.