Jamie's Pick: 07/13/12

Good morning. We’ve seen a bigger bounce than expected in the risk currencies (AUD and NZD) but I’m staying bearish against the recent pivot highs of 10281 and 8000. I acknowledge that the AUDUSD and NZDUSD have held their short term corrective channels but bigger picture evidence does not warrant a reversal of bias. The current situation highlights the importance that good entries play in risk management. Being short from 10240 enables us to minimize risk to 10280 at a time when we are uncertain if yesterday’s drop was the beginning of a larger decline or a blip in a larger uptrend. 10190/10200 is resistance.