For those of you who are still short NZD/USD from the 0.6555 entry, you saw consolidation into the New York close right at your entry. The 0.6535 level was rumored to have Chinese names on the bid this morning, and will likely be defended again on the re-approach. So with that being said, don't get too married to your position here; book some profits on that test to then re-establish your full position once that level has been cleared.

If you've been wondering about EUR/USD and USD/JPY, our bread and butter pairs, I have put myself on time out with these two until the consolidation patterns shown below are cleared. It's best to wait it out and let other traders knock themselves around while contained in such tight ranges.

Todd Gordon is a Technical Currency Strategist and Fund Trader with GAIN Capital Group.

Disclaimer
The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.