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Forex Recap: Quiet Day Except for Cable and Aussie

After volatility picked up towards the end of last week, the forex majors began this one quietly - so quiet that you can hear the pound and Australian dollar fall.

GBP/USD fell sharply. Since mid-February it has been consolidating, and today's price action suggests the start of another correction wave, as noted in an earlier multiple time-frame analysis of cable.

AUD/USD also fell after breaking a multi-month high. It's not clear whether this is simply a throwback or whether last week's bullish push was a false break. I like the throwback scenario because in the short-term there is some bullish bias. If the 4H RSI gets to 40, stochastic back to 20, I would consider buying in the 0.8980-0.90 area, which between 50% and 61.8% retracement of last week's rally.

(AUD/USD 4H Chart)

I am slightly more bullish in AUD/USD in the short-term because it made a new high last week. However, the GBP/USD  has been more bullish from the technical perspective of the charts since July 2013. 

After the Thursday and Friday jolt, the EUR/USD is in a bit of consolidation just under 1.39. The 1.3915 high made on Friday is the new 2014 high, and the market has been bullish, so the outlook remains bullish in the short-term. However, the market might need to take a breather, or a near-term bearish correction between extending higher. Let's see if it can rebound after the 4H stochastic dips below 20.

(EUR/USD 4H Chart)

USD/JPY did not go anywhere today. I am still getting ready to buy on a dip in this pair, as I noted in an earlier post today.