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Forex Recap - A Slight Rebound in Risk

The forex market was quiet today. There wasn't much in terms of fundamentals, though there was better than expected Industrial Production data from the US.  Coincidentally, there was a general flow of risk appetite in the US session.

The S&P500 fore example saw a rally off old support area. The index has been bullish but failed to reach a new weekly high last week for the first time since February.

(S&P500 4H Chart)

With risk-on trading, XAU/USD (gold) fell, but one has to wonder if the previous resistance around 1355 will turn into support. I would also anticipate some bullish attempt as the 4H RSI nears 40 and the 4H stochastic is under 20. 

(Gold 4H Chart)

USD/JPY reflected some risk appetite trading off support. A breach of a local pivot at about 101.87 can open up an intra-session attempt to extend higher. In the near-term bullish scenario, the old resistance in the 102.55-102.75 area might provide resistance again.

(USD/JPy 4H Chart)

EUR/USD also showed risk appetite as it held above last week's lows and rebounded in the US session. The 4H chart shows a pair that has been bullish since February and has no signs of slowing down. A break below 1.3830 might can form a short-term top, and a break below the channel support can introduce some short-term bearish outlook, but the market looks poised to push EUR/USD to 1.40 this week. 

(EUR/USD 4H Chart)

We have some inflation data from the US tomorrow, but the market is likely more focused on the FOMC minutes coming out on Wednesday.