Just a quick update tonight as I am happy with how the market is responding to our lower dollar, higher carry trade theme. The wave 2 pullback in AUD/JPY might be complete at 64.00, but the shallow depth of the retracement of the 61.80-64.80 move higher is making me nervous. Watching in here for now.

Continuing on with our lower dollar theme, USD/CHF looks to be teetering on the edge of a wave 3 collapse while below 1.1780. Based on the highlighted minor uptrend line break, I am offering 2 units of USD/CHF at 1.1725 and 1 more unit at 1.1760 with stops for all 3 units at 1.1810. Initial take profit for the first unit is 1.1650 and stop loss for 2 units goes to 1.1780. Take profit from the next unit is 1.1605, stop loss move to 1.1700 for the remaining unit, which will have an open target. Just a heads up that I am gearing up to give a 3-day seminar in Belgrade, Serbia early next week.



Todd Gordon is a Technical Currency Strategist and Fund Trader with GAIN Capital Group.

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