Technical Retracements On Lighter Volumes As Jackson Hole Eyed

Holiday in the UK today and a limited amount of data so lighter volumes in than normal.

Asmussen of ECB fame was on the wires telling us very little and the overly obvious. The ECB was looking to buy short maturity bonds at some point and that the outlook for the euro remains weak/challenging...really, well thank you for that.

As highlighted in our weekly preview, the market started a correction in the recent risk on trading and looked to retrace some of the gains (primarily technical moves); we are looking for a test of previous resistance levels now turned support to put us long in the market.

Tomorrow is another quiet data day, but potentially we will hear some further comments from eurozone members as well as some comments in the run up to the Jackson Hole Syposium later in the week which investors will have a close eye on. Will the Fed bailout Europe or as we suspect will Bernanke keep quieter than normal?

EUR/USD
Has started a retracement but I would not be surprised to see it push lower still and touch the support line, we will look for good entry signals on a daily and 4-hourly basis.
GBP/USD
The pound has now entered our value area, and we now patiently wait for a good entry signal, before positioning ourselves long this pair. Break below the box and of the support level changes our bias back to Bearish and range bound.

AUD/USD
A push lower today breaking the lower resistance; next support level comes in by 1.0325, however the market is starting to turn Bearish on this pair, a further move lower and our bias will change therefore this is a good pair to stand aside on for the moment.

USD/JPY
Interesting small pin off of a previous resistance point, we could be on for some further range bound trading if this holds. Previous range bottom comes in by T3.
USD/NOK
Counter trend pin suggests it is finally time to close this trade. Booked a months worth of profit on this single trade, if you want to see if it can continue the run, leave the stop and current levels and wait for it to get hit or a further move lower.