FX:
Following the FOMC’s
permission slip on Wednesday night, the USD’s barnstorming, ripsnorter rally
continues, leaving nearly all currencies in its wake.
There is a lot of talk
currently about a possible EURUSD run on parity which would seem very possible
in the near to medium term. Our
long-term target remains low 0.80’s for the pair, as projected by the charts.
The Aussie and Kiwi now look particularly vulnerable, having confirmed their respective down trends
on a long term basis last week.
I prefer to play
Aussie, Kiwi and Yen weakness against the British Pound with longs taken early November in GBPAUD,
GBPNZD and GBPJPY all performing well. I am looking for pyramiding opportunities to
increase leverage further as I feel there quite some way to run in all of these
pairs. I anticipate holding all three pairs through Q1 2017. Of course, there are many a potential curveball en route (e.g. Brexit).
