Good Day,

Some movement yesterday and overnight for me with NZD and CNY news.

I was surprised by the response the markets had to Janet Yellen's testimony yesterday, quite frankly, when I heard on CNBC that traders may have found her explanations on when rate increases may occur confusing, I thought that this was a sad indictment of U.S. education. For me, I thought it was clear and unambiguous. It would appear that the U.S. equity traders would like the FED to say that on a specific date at a specific time they will no matter what raise rates by how much!! This is very concerning. and something to keep in mind.

EUR/USD:

The big news yesterday was the EUR/USD finally broke below 1.3575 that had held us up for a couple of weeks or so. We are now on our way to 1.3500. If this level gives way, we are probably on a move much lower as this level breaking would be very bearish event.

If you are not yet short, if we get a pullback to 1.3575 this would be a great entry level in my opinion. We may never get there but that is the area to short at should we bounce.