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Forex Recap - Risk Appetite Recovered, a Look at USD-crosses

Stocks in Europe rebounded and the S&P 500 reached another record high around 1876. 

(S&P500 4H Chart)

We anticipated this yesterday: S&P500 Dips on Ukraine-related Risk Aversion - Buy on Dip?

EUR/USD - Not much happened today. The pair attempted to close the week's "opening" gap and almost did but retreated. The market remains in medium-term consolidation with some short-term bullish bias seen in the 4H chart.

(EUR/USD 4H Chart)


Fundamental Risk (USD):
Tomorrow's ADP Non-Farm Unemployment data might give the market something to go on, but it would only be as a forecast for the government's official Non-Farm Payroll data on Friday. 

Fundamental Risk (EUR)
Thursday's ECB decision is a scheduled event risk, but the situation in Ukraine is up in the air to me. 


The AUD/USD traded drifted higher after the week's initial dip and extended after a GDP report for the December quarter. It beat estimates, coming in at 0.8% and the annual rate at 2.8%.The market faded the rally and AUD/USD remains neutral.

(AUD/USD 4H Chart)

Fundamental Risk: (AUD)
There is retail sales data tomorrow that can give some intra-session effect. 

USD/JPY rallied has found temporary resistance at a falling resistance. We also saw a R80-S60 combination in the 4H chart. Let's see if the scenario anticipated in the previous post will materialize. 

USD/JPY Rallies: Look for an Intra-session Dip

Besides the US fundamentals, risk-on/off dynamics will be the fundamental factor for USD/JPY. 

GBP/USD is floating around, and is testing a newly projected rising channel support seen in the 4H chart.

(GBP/USD 4H Chart)

Fundamental Risk (GBP):
The Bank of England will meet Thursday. With the risk factors for USD rounding out the week, GBP/USD and other USD-crosses might pick up the action in the second half.