The euro, pound, and Australian dollar were traded today using the Mean Reversion strategy. I traded only the Japanese yen using the Momentum strategy.

In the second half of the day, there will be very little for the market to focus on, as no important US fundamental data is scheduled apart from the G20 meeting. Some Fed officials may comment, but this should not be relied upon. Warsh essentially said everything last Friday, and the market already has certain reference points, as his hawkish message, with an emphasis on inflation, sets the dollar's direction and continues to support the US currency.

For the euro and the pound, this backdrop means continued pressure amid lower volatility. In the absence of fresh data, both European currencies remain dependent on sentiment surrounding the dollar, which is supported by hawkish Fed signals. EUR/USD and GBP/USD will most likely remain within a narrow range, and without a new catalyst, it will be difficult for them to reverse their bearish bias. The market could be shaken up only by unexpected rhetoric from policymakers or signals from the G20 meeting.

If the data is strong, I will rely on the Momentum strategy. If there is no market reaction to the data, I will continue using the Mean Reversion strategy.

Momentum Strategy (Breakout) for the Second Half of the Day:

For EUR/USD

• Buying on a breakout above 1.1602 could lead to a rise in the euro toward 1.1620 and 1.1639;
• Selling on a breakout below 1.1580 could lead to a decline in the euro toward 1.1556 and 1.1534;

For GBP/USD

• Buying on a breakout above 1.3551 could lead to a rise in the pound toward 1.3574 and 1.3596;
• Selling on a breakout below 1.3527 could lead to a decline in the pound toward 1.3502 and 1.3475;

For USD/JPY

• Buying on a breakout above 159.79 could lead to a rise in the dollar toward 160.02 and 160.24;
• Selling on a breakout below 159.60 could lead to a sell-off in the dollar toward 159.39 and 159.13;

Mean Reversion Strategy (Return) for the Second Half of the Day:

For EUR/USD

• I will look for selling opportunities after a failed break above 1.1611, followed by a return below this level;
• I will look for buying opportunities after a failed break below 1.1583, followed by a return to this level;

For GBP/USD

• I will look for selling opportunities after a failed break above 1.3548, followed by a return below this level;
• I will look for buying opportunities after a failed break below 1.3525, followed by a return to this level;

For AUD/USD

• I will look for selling opportunities after a failed break above 0.7170, followed by a return below this level;
• I will look for buying opportunities after a failed break below 0.7155, followed by a return to this level;

For USD/CAD

• I will look for selling opportunities after a failed break above 1.3902, followed by a return below this level;
• I will look for buying opportunities after a failed break below 1.3879, followed by a return to this level;