Quiet Consolidation, Order Books Hint At Reversals

Very quiet markets today, very much consolidated after last week's moves and the spike at open in some pairs due to the poor Chinese data.

Some weaker than expected Italian figures didn't seem to play on the markets too much, as focus is on the German Constitutional Court hearing on the ESM Tuesday and Wednesday.

Given the quieter day, markets continued to grind in the direction expected. As the order books indicated, we're still seeing most of the pairs at key levels and potential turning points. Confirmations of these moves is critical however, as we could easily continue the current trends after clearing the order books.

Tonight's BoJ press conference could be beneficial for markets.

EUR/USD
Following last week's push higher, the euro sits just below a key 1.3400 level.
Despite the calls for an aggressive move lower, we continue to hold our long positions from 1.2915. This is primarily due to the one-sided nature of the Retail Order book, with over 65% of Retailers shorting this pair at the moment.
The pair today ground higher on Monday, as the 1.3200 level continues to act as support.


GBP/USD
Following our long position last week, the pair continued to hold its ground, however the order book did level off.
We have been talking about a lower weekly range in the Pound (our blue box on Weekly chart), but with the move higher last week this pair could be looking to break higher still.
Similar to the euro, we continue to hold longs but are now looking to see how this pair reacts to the moves higher, flirting with reversal signals.

AUD/USD
The aussie gapped lower but found support on Monday. We closed our shorts from last week and switched to longs, however this pair has been extremely choppy and with Retail Traders so aggressively positioned we could still see further downside in this pair.

USD/CHF
Like many other pairs, this one looks like it is gearing up for a reversal. However, at its current point we still hold this pair short.
If we continue to see the trend of Retail Traders closing their short positions, we could look to position this pair long.