FX Strategy 06 Sep 18  

CHF and GBP are the top G10 FX gainers today, up 0.24% and 0.22% vs the dollar while SEK and USD are the top losers. The Riksbank left rates unchanged at -0.5% as expected, the German factory orders fell 0.9%, and Swiss GDP rose 3.4% compared to a 2.20% previously. Global sentiments remained weak as concerns over trade wars continue to hog the news. In the Asian equities space, the Nikkei 225 closed down -0.41% at 22,487.94, Hang Seng closed -0.99% at 26974.82 and Kospi ended -0.18% at 2287.61. The European equities were trading firm with the FTSE up +0.09% at 7389.83, DAX up +0.31% at 12077.25, and CAC up +0.25% at 5273.44. In the rates market, global yields were trading a tad weaker; the US 10-year yield was trading at 2.8967% and the Bund 10-year yield trading at 0.374%. In the energy space, the Brent (front month) is trading up (0.26%) for the day at $77.47. Looking ahead, US ADP and initial jobless claims are the only key releases during the US session.


10-Year Yields Daily Chart (6-month)



USD-Index Daily Chart (2-month)



Brent Front Month Daily Chart (6-month)



Trade Weighted Basket Hourly (one-week)



Major Currency Pairs


EURUSD Chart (Two-week)



Strategy: Support at 1.1605 for 1.1703
Short-term view: EUR/USD support comes in at 1.1605, MACD crossover suggests a bullish bias and RSI is above 50. Hence we see an upside to 1.1703. Below 1.1605 to open 1.1568.


GBPUSD Chart (Two-week)



Strategy: Support at 1.2891 for 1.2978
Short-term view: GBP/USD support comes in at 1.2891, MACD crossover suggests a bullish bias and RSI is above 50. Hence we see an upside to 1.2978. Below 1.2891 to open 1.2806.


USDJPY Chart (Two-week)



Strategy: Resistance at 111.55 for 111.02
Short-term view: USD/JPY resistance comes in at 111.55, MACD crossover suggests a bearish bias and RSI is below 50. Hence we see a downside to 111.02. Above 111.55 to open 111.95.



AUDUSD Chart (Two-week)



Strategy: Support at 0.7147 for 0.7225
Short-term view: AUD/USD short-term momentum is flat and we may see a choppy range between 0.7147 and 0.7225 a break either side needed to resolve short-term outlook.


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