After a wild beginning to last week, we got a very subdued close, and Central Bankers and Treasury Officials worldwide were all reading from the same palm cards- get back to normal. I suppose everyone has different ideas of what normal is but in the case of the currency markets, the recent norm has been to buy the USD.
Fed’s Fischer stressed that the door remains open for a September rate hike.
USD/JPY rallied again but I strongly believe that this pair will test 110 in coming weeks so I am still in rally-selling mode. There is initial short-term support at 121.40 and resistance will surely be very strong between 122.00/50.
Cable should find very strong support towards 1.5350 and this is my trade of the day. Buy at 1.5370, with a s/l below 1.5330 and a t/p target at 1.5535.
I’m looking for sideways consolidation in the AUD/USD between .7115/.7215 before breaking higher.
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