FX Strategy 08 May 19

CHF and JPY are the top G10 FX gainers today, up 0.16% and 0.11% vs the dollar while GBP and NZD are the top losers, down -0.24% and -0.2% vs the dollar. The yen was trading near 6-week highs ahead of US-China trade talks; there are concerns about disputes following an increase in China’s trade surplus with the US. Elsewhere, Sterling is falling once again as Brexit talks hangs in a limbo. In the Asian equities space, the Nikkei 225 closed -1.46% lower at 21,602.59, Hang Seng closed -1.23% at 29003.2 and Kospi ended -0.41% at 2168.01. The European equities were trading mixed with the FTSE -0.2% at 7245.74, DAX 0.42% at 12144.06, and CAC 0.16% at 5404.19. In the rates market, global yields were trading mixed; the US 10-year yield was trading at 2.4566% and the Bund 10-year yield trading at -0.04%. In the energy space, the Brent (front month) is trading down (-0.16%) for the day at $69.77.


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)




Major Currency Pairs


EURUSD Chart (Two-week)



Strategy: Reistance at 1.1218 for 1.1110
Short-term view: EUR/USD holding below 1.1218 and MACD is weakening, we look for 1.1110 in the short-term. A move above 1.1218 to open 1.1262



GBPUSD Chart (Two-week)



Strategy: Resistance at 1.3096 for 1.2961
Short-term view: GBP/USD has resistance at 1.3096, MACD and RSI are weakening. Hence, we see a dip to 1.2961. Above 1.3096 to open 1.3150 in the short-term.



USDJPY Chart (Two-week)



Strategy: Resistance at 110.50 for 109.15
Short-term view: USD/JPY resistance at 110.50, MACD and RSI are bearish, Hence we see a dip to 109.76 and 109.15. Above 110.50 to open 111.12



AUDUSD Chart (Two-week)



Strategy: Resistance at 0.7065 for 0.6984
Short-term view: AUD/USD MACD and RSI are looking to dip and resistance at 0.7065. Hence there is a risk of dip to 0.6984. A move above 0.7065 to open .7098.


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