At first glance the high volatility in some pairs at the end of last week should have given us some nice trading opportunities at the beginning of this week, however when we approached the charts there was no clear immediate trading setup we could follow.
On the JPY pairs the downtrend seems strong and most likely not complete, however short-term opportunities for LONG trades were there (signaled by trendline breaks and 1-2-3 setups on the larger EW outlook). EURUSD and GBPUSD seemed particularly confusing, with short confirmations not yet triggered but bullish momentum apparently weakening.
USDCHF and EURCHF seemed on the path of a retracement after the strong CHF rally recently (by the time of this writing USDCHF already confirmed the move up).
USDCAD remains in consolidation/retracement, with 200MA on 1h possibly providing short-term resistance.
Right now, looking for EURUSD to start a decline after the failure to sustain the rally above 1.5270 yesterday. USDCHF might follow the same path (up) if the CHF remains into consolidation in short-term, so these are the pairs likely to give interesting setups later in the day.
Will follow these setups in our Live Trading Room and look for trading opportunities.
Happy trading everyone!