Some of the EUR crosses, particularly EUR/GBP, got hit pretty hard again overnight with the ECB doing its best in its statement to sound dovish whilst not actually doing anything. The first public performance of the new BOE Governor Carney was also well received and this gave the GBP some bullish impetus.

It should be an interesting day today with the RBA monetary policy statement and some important Chinese data, trade balance and CPI later today.

EUR/USD fell heavily from 1.3570 after the ECB but the technical outlook remains bullish (see chart) and most of the big banks report that dip-demand is very solid. The obvious level to enter medium-term longs would be near 1.3270 but decent support levels start at 1.3350. Previous lows at 1.3460 offer the first resistance level.

EUR/GBP has finally started to retrace and the break below .8550 opens the way for deeper losses (see chart). Short-term momentum would seem to be bearish but buying deep dips is still the logical play.

EUR/JPY is pretty tricky to trade with the ultra-strong bull trend in its back but all technical indicators screaming overbought (see chart) . Similar to EUR/GBP, I prefer the short-term sell-rally play but a medium-term ‘buy-deep-dip’ strategy.

EUR/CHF is still holding above important Fibo support at 1.2260 and this is the level to watch (see chart).

USD/JPY is solid between important short-term technical levels at 93.10/94.10, with the former a previous high now support and the latter the recent range highs.

AUD/USD has broken below 1.0300 and the outlook remains bearish. Nevertheless, losses will be slow I think and dealers report plenty of bids at regular levels on the downside. The main target is range lows near 1.0150 so I’d tend to buy any sharp intraday dips towards this level. Offers will be solid near 1.0330/40.

Good luck today and TGIF.