Commodity dollars are retracing across the board and I am not very comfortable in trading them at the moment. There should be a better sense of direction tomorrow and Friday. The market is still deciding with many pairs which way it wants to go, there is a lot of sideways movement, a lot of new highs followed by new lows. I think the USD and the JPY will continue to rally tomorrow and as such ill be looking to by those two against other crosses. I dont have any set ups im currently looking at with regards to a lot of those crosses, however, I have been following Eur.Usd more closely these couple days and I want to continue doing so today.
This bears took out the low at 1.3026 area and are now are after the fib target of 1.2954. It is quite possible to see a small bounce up before continuing towards that level. This pair has the potential to drop further tomorrow with the news releases coming out. The next area the bears will be after will be 1.2863 area, this area proved to be an area of support and resistance in the past, so proceed in caution after this point.