Hi Guys,

The big news of the week is now out of the way and for the most part, there weren’t too many shocks. The ECB, BOE and SNB have done very little with their interest rates and monetary policy. If anything the USD rebounded after a dovish FOMC only a day earlier – albeit a small one.

The EUR/USD was the most interesting mover for me. After a decent sized rally, the shared currency tagged 1.1850. Before it promptly reversed and sold back off. There was little to write home about from Draghi and I suspect the Euro might continue with its longer-term decline.

Markets might start to go a little quiet now as most of the big news for the month is out of the way. This might allow us to get more focused on the technicals as the big fundamental drivers are nearly all out of the way. The only thing left hanging over our heads are the US tax cuts.

Forex Majors

AUD/USD – The AUD has rallied hard and got a start thanks to some good employment numbers. We are now pushing out of bear territory for the time being.

EUR/USD – The Euro did an abrupt about-face and is now looking bearish once again.

USD/JPY – The Yen has fallen more than expected however we’ve put in a bullish candle above 112.00.

NZD/USD – The Kiwi could go either way right now and is stuck on 70 cents.

USD/CAD  – I’m looking for a move to the highs in the USD/CAD as mentioned yesterday.

USD/CHF – The Swissy rebounded in line with the USD but I’m still neutral.

GBP/USD – The BOE offered little, however, the Brexit talks are of most importance.

US Dollar Index (DXY) – The USD has held up at 93.50 and we might get some more bullish action. Tax cuts are the key.