Growing confidence that Ben Bernanke will be confirmed for another term as chairman of the US central bank brought some consolidation in Greenback rally against the majors on the back of risk aversion.. With EM universe holding around the resistance levels, we may have a topside squeeze in Asia session today in XXX-JPY and XXX-USD while it feels still sell on rallies.

Cable having 2 important resistance levels above 1.6260 after a smooth bounce from 1.6090 area. So worth to  watch 1.6265 (the topside of the bearish trend channel) and 1.6308 (55 days SMAVG. tight range shud be 1.6205-1.6310) resistances while downside risk below 1.6205  has more room to pay attention as no majors support till 1.6105-1.6110 area.

EURUSD, on the other hand, failed to extend the retrace above 1.4200(  1.4194 o/n high) while 1.4215 is the minor resistance before 1.4265 on the topside. 1.4090-1.4175 feels like the range today and a break of 1.4125 support intraday confirms the consolidation is over and puts pressure on 1.4040 support/ target on the downside.

Good luck all.

On 13th of Jan, Charting USDTRY post suggested a break of 1.4565 to test 1.4795 and 1.4955 accordingly with a tight SL at 1.4450.

Despite breaking 1.4565, the EURTRY stops getting triggered on EURUSD drop helped Turkish Lira to resist around 1.4665 and til the day before, USDTRY had a 1.4450-1.4650 range. The break of 1.4710 on the back of risk aversion and EM universe weakness  put more pressure on Turkish Lira and 1.4895 highs traded overnight.

Despite daily oscillators pointing a bullish momentum forming, USDTRY has 55 days SMAVG at 1.4909  and 200 days  WMAVG at 1.4940 while our inital take profit target was at 1.4955.

I think it is time to take profit  for those who were able to ride the long USDTRYs from 1.4500 till up here and reverse the direction for a retrace down to 1.4715 with a tight  SL at 1.4955.

President Obama proposing  new restrictions on banks hurt the global equity markets. Risk on to off happened sharply and XXX-JPY got hit hard accordingly. EM universe suffering while MXN leading the way seems to be putting more pressure on risk appetite and easy trade of selling EURJPY taking place at the stress level aggressively.

After breaking 128.15 support, EURJPY printed 126.55 low early this morning and bounced 90 pips right away and coming off once again at the moment, trading around 126.85. As you can see on the charts, both in daily and weekly, 126.65-126.80 area is very key for the range trading continuation for the pair and a break of the support suggests a very bearish momentum for the downside while first knee jerk related bids to step in at 124.95-125.05 area.

Hard to put a trade recommendation at the moment and feels it is better to stay on the sideline and wait for a daily close confirmation to take a directional position.

After a few painful encounters with EUR/CHF longs and absence of SNB for the last 3 big figures, I refrained from trading it for a while now.

Currently, we are approaching a very important level though – and I won’t get around putting a bit of cash into that trade.

EUR/CHF’ last low – 1.4580-00 area – should be acting as a massive, massive support. I will try to get long around 1.4610-00 with a S/L sub 1.4560. T/P i will leave around 1.4700-20 for starters or trail the S/L once we take off from there.

The rest of the currencies are bit fickle today.. loads of headlines, “risk on” /  “risk off” and very flow driven.  Want to try to sell some EUR/USD around 1.4130-50, should I get the chance.

NEW YORK (Reuters) – Share prices dropped sharply on Thursday after President Barack Obama proposed new limits on top bank risk profiles, spurring safe-haven U.S. Treasury purchases but undercutting gains for the U.S. dollar.

Obama said he is ready to fight the financial sector and its lobbyists for rules that would bar banks from owning, sponsoring or investing in hedge funds or private equity funds for their own profit, causing a bank share sell-off.