Emerging market currencies…

The Mexican Peso, Brazilian Real and the Indian Rupee are all extremely oversold.

This leads us to their respective Stock etf’s which look to be good candidates for an oversold bounce as well.

Pay attention to the opening range trade in these. A break out to the upside in these ETF’s (EWW,EWZ,PIN) coupled with the S&P 500 holding after the NYC opening would provide a low risk short term trading opportunity.

The emerging markets in general look horrific but investors love to bottom fish in these oversold dogs.

AUD/JPY…88.50 is today’s ORH #. This will act as the near term pivot in the cross.

AUD/CAD…94.59 is the ORH #. Maintaining over this level keeps the Aussie bid against everything.

EURO…133.00 +- 10 ticks brings us back to unchanged on the month.

Do not sell into this zone. Adept scalpers will be lifting this short side of the cross ( buying Euro)  and waiting to sell rallies.

We stated 2 weeks ago that we thought 88.50 was it for the Aussie on the downside. The crosses are now trying to corroborate this view. Aussie strength will put the spotlight back on the miners.