I trade much better when I have a view. I may be wrong but at least I have a plan and contingencies to that plan and that allows me to control my risk.
USD/JPY is in a 92/102 holding pattern and I will try and avoid trading this in any great size until we see the edges of this range. EUR/JPY is also in a 125/135 holding pattern but I see the danger for another final exhaustive spike towards 150. EUR/CHF is supremely well supported around 1.50 and EUR/GBP is it’s usual volatile self.
My conclusion from all this is that the EUR/USD must go higher. As I’ve said before, Sovereign names are soaking up on any dip towards 1.30 and it is generally hard work taking them on in the short/medium term. Last nights volatile price action is a positive in my opinion. Volatility will always increase significantly just when the market is ready to move. We are currently trading towards the top of the 1.3250/1.3450 short term range so I would not recommend going limit long here at 1.3400 but I nonetheless believe that we will see a 1.4 handle before we see a 1.2 handle again.
