Very little economic news for the session and broad-based USD strength. Commodity currencies continue to falter versus the USD. Very important China PMI due later today as the market moves its focus back to China this week. Japan remains on holidays.
As the majors weakened to the USD, we awaited for a retest of the Asian and yesterday’s low which allowed us a 12 pips stop loss for a potential 43 pips to our Target 2. We removed the risk from the trade relatively early and ride it down to Target 2 – protecting ourself along the way. This is the second day in a row that this pair has made a 3 Drives to a bottom pattern.
Be careful with this pair as it approaches the .70000 big figure. It will likely be reactive later today to the China PMI release, so be careful.
Good luck with your trading!
Back tomorrow if we find a trade.