Oversold USD perhaps?

Woohoo! A long weekend after ages thanks to Easter and good Friday!!

Let’s see what we have in terms of data today, it’s been quite a volatile market, seems like USD has been extremely oversold.

USD started off stronger versus most of the G10 currencies, but this turned quickly after the S&P put a negative outlook on US credit ratings for the first time!

Euro pushed lower as model names and asset managers exited their longs on the break of 1.4280-85. Finland’s election results and risk fear on Greece debt has weakened the Euro a lot. But at the same time I would be careful before I enter a short position, as USD has been fairly oversold in the past weeks.

RBA minutes came out this morning! The minutes suggest a strong pick-up in business investments and seem to balance a strong medium outlook. Didn’t cause much movement on the Aussie after the data, but still looking fairly bullish, so buy on dips!

Data Today

Reserve Bank of Australia April minutes – 1am GMT

US housing starts – 12.30pm GMT

Happy Trading!

FxTaurian