20 Mar 2015
More short-covering for FX majors? – Kshitij Consultancy
FXStreet (Barcelona) - The Kshitij Consultancy Team believes that lack of follow-through selling in the EUR, AUS and GBP might lead to short-covering today and even next week.
Key Quotes
“The Euro (1.0686), Pound (1.4771), Aussie (0.7681) all traded weak yesterday, breaching the lower ends of the envisaged ranges, namely 1.0650-1.1000 (Euro), 1.4730-1.5100 (Pound) and 0.7650-7850 (Aussie). But, they have recovered a bit and are now trading inside the range, albiet still weak in the near term.”
“Possibly, the lack of follow-through selling on the downside in the Euro, Pound and Aussie yesterday could lead to some more robust short-covering later today and next week.”
“Focus may shift to the weak data from the USA. The US Current Account yesterday was also worse than expected and Housing sector data (to be released next week) has been disheartening lately.”
“Plus, we think that traders would have been badly hit by the extreme volatility over the last couple of days and might be forced to stay out of the market, licking their wounds. This could lead also to the markets being ranged for a while.”
Key Quotes
“The Euro (1.0686), Pound (1.4771), Aussie (0.7681) all traded weak yesterday, breaching the lower ends of the envisaged ranges, namely 1.0650-1.1000 (Euro), 1.4730-1.5100 (Pound) and 0.7650-7850 (Aussie). But, they have recovered a bit and are now trading inside the range, albiet still weak in the near term.”
“Possibly, the lack of follow-through selling on the downside in the Euro, Pound and Aussie yesterday could lead to some more robust short-covering later today and next week.”
“Focus may shift to the weak data from the USA. The US Current Account yesterday was also worse than expected and Housing sector data (to be released next week) has been disheartening lately.”
“Plus, we think that traders would have been badly hit by the extreme volatility over the last couple of days and might be forced to stay out of the market, licking their wounds. This could lead also to the markets being ranged for a while.”