What Happened on [Day] > Top 3?
2nd day on USD strength puts EUR/USD below 1.2000
US Stocks break new highs but finish well off highs
Bitcoin falls $2000 on South Korea exchange prices dropped from CoinCap caclulation
Outlook
US Stocks hit highs at the open then fell back during the US session to finish only slightly higher and leave Asia with a neutral lead. So far in Asian trading Tuesday we have seen small USD selling led by USD/JPY. An important day for the market lies ahead as we see if USD weakness returns in mass.
Data & Event Risk Today?
No Data today
USDX: 92.00
Jumped back to 92.00 as the USD recovered and has room to move to 92.50 technically but the USD has struggled sustain gains in recent weeks.
USD JPY: 112.60
Strong overnight but crashed in Asia as the Bank Of Japan surprised the market by purchasing fewer bonds than expected at today’s bond Auction. The word “tapering” was bandied
EUR USD: 1.1970
EUR/USD took stops under 1.2000 and fell to 1.1960 before stablizing as EURO was to too stretched to support the EUR/USD above 1.2000. It is important for the recent rally to get back above 1.2000 and test 2017 high 1.2080 soon or the risk more range trading.
GBP USD: 1.3580
Was stronger than most in the face of USD strength as heavy EUR/GBP selling supported. Resistance at 1.3580 is still holding and above that lies the 2017 high at 1.3650. Brexit fears are subsiding and the GBP is feeling more comfortable at higher levels.
AUD USD: 0.7850
continued to orbit the 0.7850 level as the rally paused and we waited for fresh catalyst in the commodity currency.
NZD USD: 0.7180
continued to grind higher against nearly all currencies with AUD/NZD dropping to year lows near 1.0900. Major is at 1.0860. NZD/USD is testing 0.7200 and a break above opens up potential for 0.7400 in a huge reversal of fortunes for the Kiwi since December
USD CAD: 1.2410
USD/CAD had a shallow bounce towards 1.2450 but this was quickly rejected and we have ended looking lower once again with Oil at fresh year highs in the Asian session.
VIX: 9.5
small uptick in the VIX as US stocks finished off highs but it very hard to see sustained rally even from such a low level as traders have abandoned hope of volatility.
GOLD: $1319
was quiet and stable just near $1320 as trader picked on the Euro and left gold as it already had a small correction last week.
OIL (WTI): 62.20
Oil broke $62 in early Asia to fresh year highs as bear capitulated and although we have littl
BITCOIN (BTC):
Macro Themes in Play
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