Fed Chair Powell now says rates are “just below” neutral. Less than two months ago he said rates were “a long way” below that level.
So the dollar is now down against the other majors. Asian stocks are up but not by much ahead of the Trump-Xi summit.
EURUSD bounced back from the 1.1290 to meet sellers around 1.1380 dollars. This bounce is pretty meaningless; the euro will need to clear 1.1500 convincingly to affect a trend change.
If 1.1380 clears in London watch out for runs for the buy stops around 1.1430. Some weak shorts will get killed.
GBPUSD is back above the 1.2815 pivot after failing to fall thru the order cluster between 1.2730-50. Actually, we’re not sure if 1.2815 is still a pivot of interest to the bank traders. We’ll let you know.
The pound is dealing 1.2835 thereabouts and we’re not seeing any resistance from here to 1.2890 so watch out for runs to take out the buy stops above that 90 level.
The Aussie bounced likewise against the USD. It’s dealing 73.10 cents after coming back above the 72.35-70 pivot range; only 40-50 pips.
Since there’s not much progress, we expect price action to come back and test 72.70 cents
We mentioned how the USDJPY resistance at 113.80 had a low probability of clearing. The dollar is now back down to test 113.30-40 yen. We expect 112.90 to test soon as well.
Good luck and #TradeAtYourOwnRisk. Stay with us at #Mocaz and #RealTraderCommunity.