The forex markets are staying in consolidative mode today as overall market sentiment stabilized. Major European indexes are paring some of last week’s losses while US futures also point to higher open. But it remains to be seen if it’s just a dead cat bounce, or a reversal. Canadian and Australian Dollar are currently the stronger ones for today, while Euro, Yen and Swiss Franc are the softest.

Technically, in addition to Yen crosses, we’d also pay attention to Franc crosses to gauge overall sentiment. In particular, GBP/CHF is now close to 1.2259 key resistance turned support level. Sustained break of this level will argue that medium term rise from 1.1107 is finished and could prompt downside acceleration. Nevertheless, rebound from current level, followed by break of 1.2549 resistance will turn near term outlook bullish again.
In Europe, at the time of writing, FTSE is up 1.35%. DAX is up 0.73%. CAC is up 1.23%. Germany 10-year yield is up 0.0392 at -0.295. Earlier in Asia, Nikkei dropped -1.63%. Hong Kong HSI dropped -0.95%. China Shanghai SSE dropped -0.04%. Singapore Strait Times dropped -1.44%. Japan 10-year JGB yield dropped -0.0028 to 0.074.


Source: www.actionforex.com