FX Strategy 19 Jun 19

CHF and GBP are the top G10 FX gainers today, up 0.16% and 0.13% vs the dollar while NZD and AUD are the top losers, down -0.09% and -0.07% vs the dollar. The U.S. dollar was trading flat ahead of the Fed policy meeting; the investors are waiting to see if Federal Reserve will be as dovish as the ECB. ECB Mario Draghi was overly dovish on Tuesday triggering a stock and bonds rally. Elsewhere, AUD and NZD got a reprieve after Trump and Xi revived trade talks. In the Asian equities space, the Nikkei 225 closed +1.72% higher at 21,333.87, Hang Seng closed 2.56% at 28202.14 and Kospi ended 1.24% at 2124.78. The European equities were trading weaker with the FTSE down -0.35% at 7416.63, DAX down -0.04% at 12326.38, and CAC down -0.23% at 5497.18. In the rates market, global yields were trading firmer; the US 10-year yield was trading at 2.0802% and the Bund 10-year yield trading at -0.298%. In the energy space, the Brent (front month) is trading down (-0.45%) for the day at $61.86.


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: Resistance at 1.1244 for 1.1110
Short-term view: EUR/USD resistance at 1.1244 and MACD and RSI have a bearish bias, we look for a dip to 1.1110. Above 1.1244 to open 1.1289.


GBPUSD Chart (Two-week)



Strategy: Resistance at 1.2600 for 1.2517
Short-term view: GBP/USD has resistance at 1.2600, MACD and RSI are bearish. Hence, we see a dip to 1.2517, likely 1.2481. Above 1.2600 to open 1.2639, likely 1.2700.


USDJPY Chart (Two-week)



Strategy: Resistance at 108.73 for 107.57
Short-term view: USD/JPY resistance at 108.73, MACD and RSI are giving bearish signals, Hence, we see a dip to 108.01, probably 107.57. Above 108.73 to open 109.15


AUDUSD Chart (Two-week)



Strategy: Resistance at 0.6877 for 0.6830
Short-term view: AUD/USD resistance at 0.6915, MACD and RSI are looking to top out. Hence, we see a dip to 0.6830, likely .6771. A move above .6915 to open .6950.



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