Keep in mind what was written Friday – “The veracity with which the market fell on Thursday gives credence to the interpretation that the rally from the 6/1 low is complete. To be sure, markets don’t move in straight lines and there’s sure to be jockeying by both sides next week if for no other reason than to produce doubt amongst participants regarding the larger trend.” The tight ranges this week epitomize the ‘jockeying’ ahead of the next sharp move, which the weight of evidence suggests is DOWN.
The NZDUSD has reversed after retracing half of its decline…the AUDUSD has nearly retraced half of its decline and is in the reversal vicinity…and the EURUSD is trading like dead weight. I’m unlikely to get aggressive on position size until next week. In fact, don’t rule out additional upside into 10130/60 AUDUSD and 7950/70 NZDUSD. The USDJPY long from yesterday is working and the stop has been moved up from 7860 to 7920.
Summary of positions
short AUDUSD
long USDJPY
