20140102 – MARKET MONITOR

The day started as a sell-off of risk assets: SPY and EURUSD moving down vs Treasuries and Dollar moving up. Looks like a positioning at the start of the year but lets see. One day of action is not enough.

As far as gainers and losers. The highest action has been done in USDCHF and GBPJPY. Those trading these pairs had a highest chance of capturing the most amount of pips TODAY. Prepare of a nice second day play tomorrow, if pairs stay in their respective extreme upper/downer ranges.

EURUSD created a new lower high and broke the ascending trendline from 11.7.2013. This means there is a justify type of weakness in the market. As long as we can hold below 3670’s, there is a chance of moving towards the next target: 3600 and 3550’s.

Have a great start in 2014.

lechiffre