Some consolidation notable amid variable risk sentiment
Tuesday 24 August 2021
Forex pairs ranging again as the jury remains out on the Fed but risk appetite remains fragile with both COVID and Afghanistan still casting an ugly shadow.
Patience and discipline in trading are key as ever and not being greedy.Some good two-way pips to be had so picking your moments and levels are more important than ever. Recent moves were extended in recent range terms as I warned last week so some consolidation is only to be expected.
GBPUSD: A good cap at 1.3750 and now in retreat again as we range tightly. I remain a rally seller while keeping an eye on EURGBP and GBPJPY as always.
Offers: 1.3725-30, 1.3750, 1.3765, 1.3780-85, 1.3800, 1.3830, 1.3850, 1.3875-80, 1.3900
Bids: 1.3700, 1.3680, 1.3665, 1.3650,1.3620-25, 1.3600, 1.3585,1.3565, 1.3550,
EURGBP: Now supported around 0.8540 but sellers poised 0.8580-85 again. Current rally helping to cap GBPUSD.
GBPJPY: Capping at 151.00 as risk wobbles again and that suits my strategy across the core pairs.
I remain a GBP rally seller across the pairs but being patient as ever. These are risk sentiment markets and ever fickle so good/tight position management essential.
EURUSD: Capped at 1.1750 and re-sells duly placed bu support expected at 1.1720 with larger interest at 1.1700 amid some option interest there through the week. USDJPY: Rally ran out of steam into 110.20 again and now testing 109.60 again amid softer USD and fragile risk tones.EURJPY: 129.00 providing resistance again after a hold of 128.70 and testing there again amid some softer risk tones.
USDCHF: A failure now into 0.9180 on the softer USD/risk tones and now testing 0.9120 support but with the SNB ever vigiliant. EURCHF: 1.0730 now capping and testing 1.0700 again but with SNB shadow ever present.
AUDUSD: A good rally having broken the pivotal 0.7160-65 area I highlighted yesterday but 0.7240-50 proving decent resistance for the moment amid some AUDJPY supply. USDCAD: Capping at 1.2780 then 1.2700 and the solid rally last week has now given up all its gains but holding 1.2600 once more. CADJPY supply this morning helping to support.
Let's continue to be careful out there in all things. Staying safe must be our main priority still.
Interbank rates: 08.47 BST