Yesterday morning (Morning Call #50) I wrote that the Dollar Index needs to hold the 95.55 treshold to get a chance of a comeback into the recent 95.60 / 96.60 range. But the tight daily close at 95.62 is already fading away this morning. Amid soaring stocks the Dollar is losing its safe haven bids either in an already battered technical situation. The economic calendar is thin today and all eyes are on US CPI numbers tomorrow. A surprise to the upside could change the picture quickly but also fading stock strength could attract bids in the Dollar.
Biggest mover in G10 today has been AUDUSD so far (0.7177 +0.45%). The (high beta) currency pair particularly benefits from a soaring risk sentiment. At time of writing the pair trades just ahead of the 50 ema (0.7179) and just slightly above the support/resistance at the 0.7170 mark. I would like to short the pair but fear it may be too early.
Cable went higher (1.3571 +0.18%) since yesterdays newsletter but has not made it above the 1.3600 mark yet. The price action is not very dynamic at the moment and you could try to short the pair. But at the latest above the 1.3615/28 resistance zone the (tactical) short scenario is over.
Good luck,
Sebbo