SEK and NOK are the top FX G10 gainers today, up +0.82% and +0.62% (vs USD) while AUD is the top losers down -0.26%. That said, AUDUSD and EURUSD have taken out key level at .7653 and 1.1750, respectively, which suggests that more upside is likely to follow. In the equities space, the Asian markets once again traded firm with the Nikkei 225 ending the day +0.87% higher at 22,823 and Hang Seng finishing up +0.81% at 31,512. The European equity indices, however, are trading mixed, with the FTSE down -0.40%, DAX up +0.25%, and CAC up +0.47%. In the rates market, the yields are trading firm once again with US 10-year yield trading at 2.99% and the Bund 10-year yield trading at 0.51%. In the energy space, the Brent front month is trading flat for the day at $75.88, also in the middle of a newly formed bear channel. In terms of data today, the Australian trade balance came slightly lower than expected. Looking ahead there is not tier one release during the US session. In terms of central bank speakers, BoE’s Ramsden and BoC Gov Poloz are due today. Amid lack of data, the financial markets focus is likely to remain on Geo-Politics.
USD-Index Daily chart (2-month)
Brent Front Month Daily chart (2-month)
Trade weighted basket Hourly (one-week)
Major Currency Pairs
EURUSD Chart (Two-week)
Strategy: Resistance at 1.1875 for 1.1765
Short-term view: EUR/USD moving in a bear channel and MACD is topping. Hence, we see a dip to 1.1765, possibly 1.1708. Above 1.1875 to open 1.1900-1.1950
GBPUSD Chart (Two-week)
Strategy: Resistance at 1.3487 for 1.3398
Short-term view: GBP/USD has resistance around 1.3487 and MACD looking to correct. Hence, we see a dip to 1.3398. A break above 1.3487 to open 1.3524.
USDJPY Chart (Two-week)
Strategy: Resistance at 110.21 for 109.40
Short-term view: USD/JPY has resistance at 110.21 (200day MA) and MACD is diverging. Hence, we see likelihood of a dip to 109.40. A break above 110.22 to open 110.65
AUDUSD Chart (Two-week)
Strategy: Support at 0.7620 for .7693
Short-term view: AUD/USD has broken a key medium-term level at .7653 and bear channel is also broken. Hence, we may see a rise to .7693, potentially .7720-.7746. Below .7620 to open .7583