In the G10 currencies today, JPY and NZD are the top two gainers while CHF and USD are the weakest. The USD-index continues its fall in early hours of European trading with weakness seen versus all the majors. In the equities space, the Nikkei 225 has closed -0.24% at 22496 and the European equities have also opened lower with FTSE down 0.15%, DAX down 0.2% and CAC down 0.2%. In the rates market, the German and the US 10-year yields are both consolidating with the German yield trading at 0.37% and the US yield trading at 2.35%. In the energy space, the Brent is slightly weak at $63.62 after a strong performance last week; the weakness is likely due to investor cautiousness ahead of the OPEC meeting on Thursday in Vienna where the market is expecting further oil production cuts. In terms of the economic data today, there is no tier one release from Europe today. From the US the new home sales at 1500 GMT is the only data point of any note. In terms of central bank speakers, Fed’s Kashkari (dove) is the only speaker scheduled for today. The data for the rest of the week is a lot busier than today; the Euro-area and German inflation rate, unemployment rate from Germany, Canada, and the Euro-area, CPI from Japan, retail sales and GDP from Sweden and manufacturing PMI from the UK and the US are all due this week.

USD-Index Daily chart (2-month)

Brent Front month Daily chart (2-Month)

Trade weighted basket hourly chart (1-week)

Major Currency Pairs

EURUSD Hourly Chart (Two-week)

Strategy: Support at 1.1913 for 1.2000
Short-term view: EUR/USD is looking constructive and support has been seen at 1.1913. Hence, we expect another bounce to 1.2000. Below 1.1913 to open 1.1880.

GBPUSD Hourly Chart (Two-week)

Strategy: Support at 1.3281 for 1.3400
Short-term view: GBP/USD has support at 1.3281 and MACD is also reversing from just near the zero line. Hence, we expect a bounce past 1.3345, possibly to 1.3400. Below 1.3281 to open 1.3258

USDJPY Hourly Chart (Two-week)

Strategy: Resistance at 111.61 for 110.97
Short-term view: USD/JPY has broken key support at 111.61 and hence while below there chances are for a deeper dip to 110.97, possibly 110.65. Above 111.61 to open 112.11.

AUDUSD Hourly Chart (Two-week)

Strategy: Support at .7600 for .7642
Short-term view: AUD/USD completed a head and shoulders base last week and hence we expect a further upside to .7642, possibly .7678. Below 0.7600 to open .7572.