At the beginning of the European session we say a "Risk off" movement without a clear catalyst coinciding with the 30th anniversary of the 1987 crack, the famous black Monday as a backdrop. Movement towards safe havens like the JPY or CHF that corrected considerably and with stock American futures in red. Little by little the movement corrected to find us now practically at the same levels where we began yesterday's session.
The Budget approval by the US Senate has attracted demand for USD, next step will be the approval of the long awaited tax reform.
Yesterday's President Trump's brief meeting with Janet Yellen strengthen even more Jerome Powell as her favourite successor, which would mean keeping the same line in rates as the current Federal Reserve.
Just as a reminder of Trump's comments during the 2016 campaign, saying that "They're keeping rates artificially low", we are seeing again a President who differs a lot between his campaign proposals and the measures that he is currently carrying out.
The Euro demand continues against its main crosses, especially JPY, CHF and GBP. EURCHF has set new highs during the Asian session at 1.1630, levels not seen since the floor was withdrawn in January 2015.
Nevertheless, we continue to hold 1.17/1.19 range in the EURUSD and 111.50/113.50 in the USDJPY.
On Sunday the presidential elections will take place in Japan where, with a high probability, the current president Shinzo Abe will win again. We expect some volatility in the Asian opening this weekend especially in the crosses against the yen if the survey forecasts are not fulfilled .
H&S formation in the Daily EURUSD graph. To nice to be true. 1.1650 level to watch on the downside to confirm.
Sell EURGBP 0.90 - TP 0.88 - 0.91
Note: This analysis is a personal opinion based on my experience, not a professional signal service. For trading, you must base your decisions on your own criteria
