It's Groundhog Day again as range trading continues
Friday 14 August 2020
August is disappearing fast but price action on FX pairs is still contained as the jury remains out on both risk and USD sentiment. Not much more to add really given we all know the ongoing scenarios re COVID, US-China, Brexit trade talks, ultra-cheap money et al.
US treasury yields rose after a disappointing 30-year auction yesterday and that gave a firmer tone to the Greenback after some earlier losses. Risk sentiment a little wobbly now after some Chinese data misses and European equities opening a tad lower.
GBPUSD has enjoyed a 1.3050-1.3125 round trip amid the variable USD supply/demand while
EURGBP continues to cap around 0.9050 but equally finding support around 0.9030 as core pairs rally/fall in tandem.GBPJPY finally breached 140.00 but found expected sell interest around 140.20 and now down to 139.45 on the softer risk tones.
I stay poised to sell GBP rallies overall as my preferred side and buy back in the dips as ever.Patience will continue to be a virtue and entry level key as always. I still expect to continue seeing dip demand though as we continue to range.
USDJPY had another look at 107.00 but holding at 106.60 again while EURJPY found support at 126.00 as its upward journey continued but found sellers at 126.75 a step too far.EURUSD posted highs of 1.1860 amid the initial USD supply but down to test 1.1800 since after that 30-year US bond auction provided fresh USD demand and now with softer risk plays.USDCHF failed at 0.9120 (where I noted offers building yesterday) as EURUSD rallied and with EURCHF still ranging with the SNB lurking and since back down to 0.9080 but rallying again as EURUSD retreats.
AUDUSD has found support at 0.7130 after failing above 0.7180 again and some re-sells duly placed with Victoria COVID land RBA Lowe's dovish AUD comments but still ranging. USDCAD found itself posting fresh lows of 1.3192, no seen since Feb amid the USD supply/firmer oil combo but since rallying to 1.3242 on the reverse as I type.
Markets are ever-fickle so don't forget to get in touch if there's areas of trading these markets that you might need some further help with.
I wish you good trading and let's continue to be careful out there in all things. Staying safe must be our main priority still. Have a good week=-end everyone.
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