The outlook for risk deteriorated late last week and a series of Double Tops suggest some follow through selling in the coming days. However, we see the decline as corrective in nature and the FX market seems sanguine, as well established ranges dominate trading and activity remains subdued. Markets like USD/CAD and USD/JPY are getting into a tight spot and the risk of a breakout this week is growing but for the time being we are prepared to be patient.
Click here to read the full report: Technical Research
Barclays Capital