EUR/GBP has been the main mover over the last 48 hours and yesterday’s strong technical signals have proven correct. Nevertheless we should probably be careful on this particular cross today as some big flows are expected.
The EUR also managed gains against the CHF in another sign that the EUR short-covering is a slightly more dominant factor than the USD selling, for the moment at least.
The AUD has stalled as expected around the .9725 level but the pullback so far has been very modest. I think we need a bit more evidence here before getting overly bearish. Perhaps re-visiting the EUR/AUD trade again might be fruitful.
Good luck today.
