FX Strategy 03 Jul 19

AUD and NZD are the top G10 FX gainers today, up 0.29% and 0.27% vs the dollar while GBP and NOK are the top losers, down -0.14% and -0.08% vs the dollar. The U.S. dollar slumped to a week low as the Treasury yields fell on dwindling optimism over the China-U.S. trade deal and on chances of a fresh tariff war with Europe. Elsewhere, Pound continues its downward spiral as expectation of a BoE rate cut gained ground following Governor Mark Carney’s comments citing rising uncertainty stemming from trade disputes and Brexit. In the Asian equities space, the Nikkei 225 closed -0.53% lower at 21,638.16, Hang Seng closed -0.07% at 28855.14 and Kospi ended -1.23% at 2096.02. The European equities were trading firm with the FTSE up +0.58% at 7602.96, DAX up +0.74% at 12619.85, and CAC up +0.57% at 5608.49. In the rates market, global yields were trading weaker; the US 10-year yield was trading at 1.9532% and the Bund 10-year yield trading at -0.391%. In the energy space, the Brent (front month) is trading up (0.13%) for the day at $62.48.




Economic Calendar



10-Year Yields Daily Chart (6-month)



USD-Index Daily Chart (6-month)



Brent Front Month Daily Chart (6-month)



Trade Weighted Basket Hourly (two-week)




EURUSD Chart (Two-week)



Strategy: Resistance at 1.1311 for 1.1244
Short-term view: EUR/USD resistance at 1.1311 and MACD and RSI are still bearish, we look for a dip to 1.1244. Above 1.1313 to open 1.1341-1.1372.


GBPUSD Chart (Two-week)



Strategy: Resistance at 1.2600 for 1.2521
Short-term view: GBP/USD has resistance at 1.2600, MACD and RSI are bearish. Hence, we see a dip to 1.2521, likely 1.2481. Above 1.2600 to open 1.2650.


USDJPY Chart (Two-week)



Strategy: Resistance at 108.01 for 107.05
Short-term view: USD/JPY resistance at 108.01 MACD and RSI are bearish. Hence, we see a dip to 107.05. Above 108.01 to open 108.35


AUDUSD Chart (Two-week)



Strategy: Support at 0.7018 for 0.6950
Short-term view: AUD/USD resistance at 0.7018, MACD and RSI lacks upside momentum. Hence, we see a dip to 0.6950, likely 0.6915. A move above 0.7018 to open 0.7065.



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