After last week's views, a quick update...
Gold managed to present us only a minor bounce from the support before Friday's bomb: weak macro data soured all risk instruments, but the real culprit was the statement from ECB's Draghi: crisis countries' central banks should sell their gold holdings to pay back the ELA loans from the ECB. JPY failed to break the 100-level vs. the dollar, and the report from US blaming currency war-mongering probably scares some more in the Asian session (Bruce Krasting and Marc to Market had a note on this, as did several others - see my Weekend linkfest).
For the beginning week, if the US report pushes JPY any stronger on Monday, there will be a good opportunity to bet on weaker yen (break of 100 against the USD etc)... I'd prefer shorting the yen against the euro. Otherwise, range-trading as the calendar does not provide any meaningful events to turn any pair around. EURUSD buys on dip, as the trend is still up - but the price action has turned into more horizontal last week.
The hourly charts are zoomed just so that the full trading week shows. For more charts see my last week's Views.
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| Hourly charts (click to zoom) |
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| Daily charts (click to zoom) |