Liquidity is low but currencies are certainly on the move.
The team at Credit Suisse sees interesting technical behaviors:
Here is their view, courtesy of eFXnews:
Credit Suisse technical strategy team provide some insights on the technical setups, trade ideas and projected paths for EUR/USD, and AUD/USD.
EUR/USD: Support at 1.0796/92 is holding for now, but a break would set a bigger top.
“EURUSD has found some stability just ahead of more important price and retracement support at 1.0796/92 – 50% of the rally from early December.
However, the risks remain lower for an eventual break below 1.0792 to set a larger top. This would then open up further weakness to the top of the recent base at 1.0638/37 initially, and eventually the 1.0524/21 price lows. A break below the latter is needed to turn the trend lower again for 1.0458,” CS argues.
CS looks for 1.1011 to ideally cap EUR/USD bounces to keep the immediate trend lower.
CS entered a short EUR/USD today from 1.0905 targeting a move to 1.0640.
AUD/USD: Below key trendline support at .7092/92 would warn of a large bearish “triangle” continuation pattern.
“AUDUSD is managing to yet again hold the lower end of its “triangular” range, currently placed at .7092. We allow for corrective strength to extend, but ideally look for trendline resistance and the falling 21-day average at .7241/51 to cap to see a retest of .7096/92.
Beneath here and then price support at .7070 can resolve the range to the downside to suggest a large bearish “triangle” has been completed, to target the November low at .7016 initially.
Resistance moves to .7201 initially, then .7217, with .7241/51 ideally capping to keep the immediate bias lower in the range. Above can see a move back to .7280/84,” CS projects.
CS maintains a short AUD/USD from .7280, with a stop at .7385 targeting a move to .6940.
For lots more FX trades from major banks, sign up to eFXplus
By signing up to eFXplus via the link above, you are directly supporting Forex Crunch.