Well overnight there has been some bullish movement from the Non-cross pairs. GPBUSD and EURUSD, but I do not think this is a turn in the market just a wobble. Morgan Stanley are still bearish on sterling. This morning’s news should confirm one way or the other if the Euro has in fact started recovery or is sitting at the top of a bearish channel. Remembering that the daily charts are still bearish for EURUSD/GBPUSD. There was bad news from the USA that has caused the retrace of these currencies but on the whole the dollar is strong. I think todays news will in fact confirm my feelings that EUR & GBP are far from being out of a hole, but in fact the USD might be starting to have problems, which may mean looking for another strong currency to trade.
Incidentally I found this article that was pretty clear that he thought EURUSD was range bound (staying with in a channel) for the short term and then bearish for the long term.
Hint: If you can find the strongest currency and trade it against the weakest currency you should definitely make a profit. That’s what trading the trend does. It works with currencies that are obviously stuck in a particular direction.
Selling GBPUSD this morning it’s at the top of a nice long bearish wedge heading down so I’m reaping that one for a while but may pull out before 12:30 when there is USD news although the consensus is that it will be good for USD and thus load more weight on an ever struggling GBP.