Separation on the major pairs was once again in play overnight, as a fair reflection of a trading arena wresting with fair value that changes as each regional market opens and closes. A quiet economic calendar awaits, and the Usd may gain some near-term ground unless volume and momentum quickly pick up.
Forex Movers- Aud maintains the bullish outlook that has supported the pair since the break of the 200-day SMA at 0.8950. Only looking to buy the dips. Cad looks strong against the Usd and once the 100-day SMA at 1.0290 is closed under on a daily chart the automated orders may test 1.0200. Only looking to sell resistance. Jpy lost ground to the Usd with a solid break of 87.10 that could be the start of a move higher towards 90.30. Only looking long on Usd/Jpy in the mid-term.
Forex Shakers- Chf trade absorbed what looked like institutional intervention that reversed Usd/Chf off 1.0450 support. Not looking to trade swissy, just looking for guidance from the pair as to overall market sentiment. Gbp and Eur are stuck at resistance with the path of least resistance being lower unless volume and speculative interest increase soon.
Global Risk and Demand- S/P trade is trading above the 200-day SMA area at 1105, and will signal a positive stance if 1110 is held above on a weekly chart close. Crude oil traders are holding support on WTI at 78.00, with a weekly close anywhere above 77.00 signaling a bullish undertone for global demand markets.