- Coming Up Today(all times GMT)
- CHF KOF Economic Barometer (09:30)
- USD Core PCE (12:30)
Risk buying continues as last week's biggest losers have been this week's outperformers. The EURAUD which had traded higher by 14 big figures from 1.4000 to 1.5400 is back to under while 1.4500. Also, buying continues to emerge in the Loonie and Kiwi. Additionally, Crude Oil prices have finally broken out of their prolonged slump and have jumped about 8.5% from this week's lows. Nonetheless, buyers are being picky as the Euro and Swiss Franc haven't seen much interest in this current risk rally.
The EURUSD hasn't been able to capitalize from the current sentiment return to risk buying as Forex traders continue to view the Euro as damaged goods and are using it fund their carry trades of other higher yielding currencies. As such, the EURUSD was hit with heavy selling pressure as it approached 1.2400 yesterday. Forex traders continue to believe that short positions contain a better reward in the pair, and they have been sellers in every rally. Looking ahead, the EURUSD must trade and hold above 1.2400 to prove to sellers that buying support is reemerging.
The pair broke out of its 1.4250/1.4500 trading range yesterday and hit highs of 1.4608. Nonetheless, unlike the AUDUSD, it has lost a lot of yesterday's momentum, and is moving lower this morning. As such, traders will be watching if it can hold above the key 1.4500 figure, and retest the 1.4608 highs. If it tests 1.4500 and hold that support, it may indicate that buyers that were supporting the pair at 1.4250 have become more aggressive in their purchases, and may lead to a further breakout beyond 1.4608.