FX Strategy 10 Jul 19

CHF and EUR are the top G10 FX gainers today, up 0.24% and 0.14% vs the dollar while JPY and AUD are the top losers, down -0.07% and -0.06% vs the dollar. The Emerging Asian currencies moved little as investors awaited Federal Reserve Chairman Jerome Powell congressional testimony for clues on near-term United States monetary policy. AUD fell for the fifth straight day on disappointing economic data and tempering of expectation regarding US rate cuts. Elsewhere, Sterling hit a two year low on rising fears about a no-deal Brexit and worsening economic outlook. Looking ahead we have the BoC policy meeting later today; the risk to CAD is from dovish comments from Governor Poloz. In the Asian equities space, the Nikkei 225 closed -0.15% lower at 21,533.48, Hang Seng closed 0.31% at 28204.69 and Kospi ended 0.33% at 2058.78. The European equities were trading weaker with the FTSE down -0.09% at 7529.65, DAX down -0.21% at 12410.77, and CAC down -0.1% at 5566.72. In the rates market, global yields were trading firmer; the US 10-year yield was trading at 2.1082% and the Bund 10-year yield trading at -0.296%. In the energy space, the Brent (front month) is trading up (1.96%) for the day at $65.42.



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: Support at 1.1200 for 1.1282
Short-term view: EUR/USD support at 1.1200, MACD and RSI are turning up, we look for a bounce to 1.1282, likely 1.1331. Below 1.1200 to open 1.1167


GBPUSD Chart (Two-week)



Strategy: Resistance at 1.2521 for 1.2421
Short-term view: GBP/USD has resistance at 1.2521, MACD and RSI are bearish. Hence, we see a dip to 1.2421, likely 1.2381. Above 1.2521 to open 1.2584.


USDJPY Chart (Two-week)



Strategy: Resistance at 109.15 for 108.35
Short-term view: USD/JPY resistance at 109.15, MACD and RSI are topping out. Hence, we see a dip to 108.35, likely 107.87. Above 109.15 to open 110.00.


AUDUSD Chart (Two-week)



Strategy: Resistance at 0.6942 for 0.6877
Short-term view: AUD/USD resistance at 0.6942 MACD and RSI are bearish. Hence, we see a dip to 0.6877, likely 0.6830. A move above 0.6942 to open 0.6983



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