Volatility rose yet again as US equity markets moved lower again today, renewing strength in the Dollar and pulling the EURUSD down from its latest attempt at setting new year highs during this morning’s early trading. Early Asia session movement has indicated more EURUSD losses are in store, but important support is seen below.
With volatility increasing and Dollar momentum picking up, we are shifting to even more cautiousness over the next 24 hours. If the futures market indicates a good open for US equity markets, we may look for a good price to sell the Dollar on AUDUSD and EURUSD.
Daily Currency Pair Analysis
AUDUSD: We are anticipating a bounce in the market during tomorrow’s Euro session and a short term AUDUSD may take advantage of this scenario. However, again we are increasingly cautious as the Dollar gains have been driven by uncertainty in equity markets.
Potential Trade: Long AUDUSD
Optimal Entry: .8600
Potential Stop Loss: .8520
Potential Take Profit: .8775
