Going into the last full trading session of the week, the major forex pairs are showing Usd weakness, in-line with global equity futures that have held support and Wall Street stocks that have moved off the lows of the day and in-line with the sentiment that has soured on long-Usd trade in the near-term. If equities continue to contain the sellers the dollar index will struggle to move higher. The near-term European pair reads are long Eur/Usd with 1.2350 a main swing point, Short on Usd/Chf with 1.1100 and 1.1200 the main price points, and long Gbp/Usd if 1.4850 can be taken out soon. Aud/Usd is long, but struggling to get past 0.8700, short on Usd/Cad past 1.0245, and short on Usd/Jpy with a daily chart close under 90.50 seemingly pivotal to the short side of trade holding.
The next main equity price points of note that will generate market-wide momentum are 1105 short on the S/P allowing the Usd to get bought, and 1115 long on the S/P likely to draw in further major currency buying.
It is a boring theme, but the reality is that whatever direction equities move will have a major impact on forex trader; long equities/short Usd is the theme.
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