Daily Observations: December 11, 2012
- Long EURCHF from 1.2018, Stop at 1.1990, Target 1 at 1.2500, Target 2 at 1.2750
- Long USDJPY from 80.65 (1/2), Stop at 82.05 (daily close), Target 2 at 83.30
Recently Closed Positions:
- Closed Short EURUSD (1/2) from 1.3110 at 1.3030 for +80-pips.
- Closed Short EURUSD (1/2) from 1.3110 at 1.2905 for +205-pips.
Time Frame: 1-day to 1-week
Bottom line: looking to sell US Dollar strength ahead of the Fed meeting tomorrow, in particular against high beta (AUD, CAD, NZD). Also attempting to sell Euro rallies against high beta given outcome of ECB Rate Decision and Italian PM Monti resigning.
I will be looking long USD following Chairman Bernanke's press conference, as I imagine that the AUDUSD (1.0610/30), EURUSD (1.3110/30), and S&P 500 (1435) will be near key resistance levels if the market has a reactionary move higher (key levels in parentheses), which should be sold as the market begins "pricing in" the next major fundamental catalyst.
--- Written by Christopher Vecchio, Currency Analyst
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