FX Strategy 02 Oct 18 

JPY and CHF are the top G10 FX gainers today, up 0.25% and 0.07% vs the dollar while SEK and AUD are the top losers, down -0.89% and -0.83% vs the dollar. EUR remains under pressure not helped by remarks by the official from Italy’s ruling party; he said that country’s problem could be resolved if it scrapped Euro as its currency. Elsewhere, Tory Brexit divide weighed on sterling. Overall, safe havens are catching a bid at the expense of the commodity currencies. In the Asian equities space, the Nikkei 225 closed up 0.10% at 24270.62, Hang Seng closed -2.38% at 27126.38 and Kospi ended -1.25% at 2309.57. The European equities were trading weaker with the FTSE down -0.53% at 7455.74, DAX down -0.92% at 12225.47, and CAC down -0.91% at 5456.87. In the rates market, global yields were trading weaker; the US 10-year yield was trading at 3.052% and the Bund 10-year yield trading at 0.416%. In the energy space, the Brent (front month) is trading down (-0.28%) for the day at $84.74, having failed to break the psychological $85.00.


Economic Calendar



10-Year Yields Daily Chart (6-month)



USD-Index Daily Chart (5-month)



Brent Front Month Daily Chart (6-month)



Trade Weighted Basket Hourly (one-week)



Major Currency Pairs


EURUSD Chart (Two-week)



Strategy: Support at 1.1513 for 1.1595
Short-term view: EUR/USD has met our target, strong support exist at 1.1513, MACD and RSI is bottoming. Hence, we see a bounce to 1.1595, possibly 1.1651. Below 1.1513 to avert upside, instead open 1.1457-1.1480 area.



GBPUSD Chart (Two-week)



Strategy: Resistance at 1.3058 for 1.2900
Short-term view: GBP/USD resistance comes in at 1.3058, MACD is turning down and RSI has moved below 50. Hence, we see a downside to 1.2900. Above 1.3058 to open 1.3100, possibly 1.3151



USDJPY Chart (Two-week)



Strategy: Resistance at 114.06 for 113.00
Short-term view: USD/JPY resistance in at 114.06, MACD suggests a bearish bias. Hence we see a dip to 113.00. Above 114.06 to open 114.49



AUDUSD Chart (Two-week)



Strategy: Resistance at 0.7221 for 0.7100
Short-term view: AUD/USD resistance comes in at 0.7221, MACD crossover suggests a bearish bias and RSI is below 50. Hence, we see a downside to 0.7100. Above 0.7221 to open 0.7278.



BTCUSD Chart (Two-week)




Strategy: Resistance at 6638.11 for 6402.65
Short-term view: BTC/USD resistance comes in at 6638.11, MACD crossover suggests a bearish bias and RSI is below 50. Hence, we see a downside to 6402.65. Above 6638.11 to open 6730.19.


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