It has been a wild ride since the Fed decision on Thursday and after some very choppy trade the US$ is lower, particularly against the Jpy and the Chf which have been in demand due to safe haven requirements as stocks take another big hit, down by around another 2%.
While the US$ generally looks to remain within its current range in the near term against the EU majors, the short term charts suggest that it will remain heavy to selling rallies in the dollar appears to be the plan for the next 24 hours. A daily close above 1.1500 in EurUsd would suggest that the dollar’s weakness may extend towards 1.1550/80. The Aud and Nzd both look less certain of further gains, but while the US$ remains weak elsewhere, their downside is probably limited although selling the Aud$ on the crosses may still be a plan.
Stocks still look pretty ghastly and trading from the short side, looking to sell rallies, remains the plan.
Overall, with liquidity rapidly thinning out I would not be too involved ahead of Christmas, but selling the stock markets remains the dominant theme. In the FX markets, being long Jpy and Chf still seems to be the plan.