The price action yesterday was driven again by a positive risk sentiment. That was not a good envirement for the Dollar. Corresponding to that Aussie led on the currencies profiting the most with a close cleary above the 0.75 handle at 0.7515. The same applies to EURUSD closing just above the 1.1650 level.
In the early asian session this am the sentiment switched from risk-on to risk-off but not dramatically for the time being. At time of writing AUDUSD trades below 0.75 again, USDJPY hovers around the 114 level and EURUSD at 1.1639 is showing no signs of further strength for now.
It is possible that the market tries to switch back to risk-on mode again pushing the Dollar lower. But I am not convinced yet that the Dollar is going to lose much ground short-term. As long as EURUSD do not close on a daily base above its 50 ema (1.1697) I would fade rallies to the recent highs 1.1669 (19oct) respectivly 1.1667 (this am).
Good luck,
Sebbo
Comments
No posts