level here in USD/CHF between 1.0220-40.
Seems to be decent enough to be long against.

I bot the EUR/CHF against my EUR shorts from yesterday
and sit long USD/CHF now.

Will S/L sub 1.0187 and hope for a decent rebound.

Grasping straws here I suppose  -  but decent level to give it a shot.

CABLE-currently sitting on very decent 1.5540-60 support. Watch that one carefully though, that is the third attempt on that support line as you can see. A break of that line would suggest a move to 1.5400-30 area.

USD/JPY-yet again, the resistance held yesterday, 85.80-00. Now the resistance moved to 85.40-60. Move through 85.60 would finally open up to test higher. I am quite bullish on these levels.. but the trade seems rather crowded and the last few attempts been quite disappointing.

EUR/JPY-that might be pointing out the obvious. But 108.90-00 still acting as a massive support and even though there is rumors of S/L below it and it trades heavy almost every morning, we don’t seem to be able to break it. On the chart you see it is building a wedge, with the levels at 108.90-00 and 110.20-40. As long stuck within there, especially in Asia, I doubt we will see any follow through. But keep an eye on it..

Any of the levels mentioned here, could be the trigger for the breakout we are all waiting for….

Two dissapointing US data ( rise in jobless claims in addition to softer Philly FED survey) led equity markets sliding yesterday.

Uk retail sales up-beating the expectations altered the risk aversion related USD buying since Asian opening on the back of  Der Spiegel article.

EURUSD having good support around 1.2775/1.2785 caught intraday shorts on the wrong foot and after printing 1.2903 highs, pair is back to the square one, almost the same level we started yesterday.

I was expecting a further squeeze on the topside due to heavy SL positioning but it looks like market wants to trade lower, eyeing 1.2660s ( 55 days SMAVG at 1.2669) while 3 month libor is at its lowest level since April 28th.

For today, we have 2 important supports one is here at 1.2800 and the 2nd one at 1.2745. For those who managed to catch the dip in front of the ACB demand between 1.2775/1.2785 should be a bit careful today as a break of 1.2800 definitely will take those bids out down there ( also worth to mention that 1.2777 (38.2% fibo retrace of 1.1877 to 1.3334 rally)

1.2745/1.2875 would be our range in EURUSD today with supply reloaded around 1.2830s..

In April 2009, USDKRW broke 1400 support on global risk sentiment headed south down to 1090 in a very solid bearish trend channel. After a rounded bottom around 1100, the pair traded up to 1270 with bullish USDKRW trend support between 1210/1170 relying on BoK interventions. Between May-June, 2010, USDKRW seems to form a double top around 1270 and increased the bearish momentum by the break of 1195 support. Ignoring all the fundamentals and technically speaking ( I still have fears in terms of global growth outlook and its reflection on EM spot/ndf markets ) , if this is still bearish USDKRW momentum, 1210-1215 should cap a possible pullback for a further drop down to 1165 and 1115 accordingly..

Much stronger than expected German IFO and UK GDP led EURUSD and Cable rallying aggressively before EU Banks test results on Friday.

After touching up to 1.2966, EURUSD dropped to 1.2794 on the back negative rumors but only 7 out of 91 banks failing the tests with the aggregate capital shortfall of 3.5 billion Euros caused the pair climbing back to 1.2934 later on.

Failing to break 1.30 on a clean break and getting sold off for 2 big figures each time from the highs on the back of short gamma option books in addition to intraday stop loss orders suggests a major resistance is formed around 1.2975/1.3005 area at the moment. EURUSD bulls at the moment defend the view that US Interest rate outlook and risk appetite rising after EU Bank test results will cause a weaker greenback in mid-term which still needs a daily close above 1.3020 after triggering decent size stops above 1.3040-50.

Too many players looking at the same chart and positioning accordingly brings the ultimate risk of a downside squeeze before having a higher move. Technically speaking a test of 1.2675 support ( bottom of the bullish trend channel) is more likely before reaching to the 1.3350 resistance on the way to the 200 days SMAVG at 1.3624 (moves downward 10 pips each day).

I think we may have a range of 1.2855/1.2925 today in Asia vs. 1.2810/1.2950 range till tomorrow Asian opening with good supply located between 1.2950/1.2970. A close above 1.2945 may eliminate the risk of a downside retrace and we may end up seeing the rally sooner than later.