Many of the currencies remained range bound most of the day. That being said, both the Euro and the Pound displayed multiple dramatic 15 pip/10 minute whipsaws and I was lucky enough to pick up 2 short term trades on the Euro and 1 on the Pound that produced a total of 34 pips.
The Pound is looking a little tired and the Euro appears hard pressed to break through the 1.3490 resistance. Looking forward I still see the possibility of the Euro at 136 although from a tactical standpoint I feel most comfortable shorting any rallies. If we do see a new push in the Euro I would be disposed to carry short trades longer than intraday as I feel the risk is clearly with the longs (famous last words). Looking at the volume leaders, TLT continues it’s push back to 108 while the Swiss franc just keeps chugging uphill.
The Euro also showed solid volume but with a significant reduction in short interest. The Euro is currently down 30 pips from the US equities market close as of 5:50 pst. If the swoon holds, expect a lower equities market open on Tuesday.
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