FX Strategy 19 Sep 18  

NZD and GBP are the top G10 FX gainers today, up 0.38% and 0.37% vs the dollar while CHF and USD are the top losers. The US dollar is gaining versus the yen while commodity currencies are having a relief rally. Overall, risk sentiments are improving and hence, we can see a further rally in high yielding currencies over the coming days. Elsewhere, UK CPI m/m was a beat (0.7 % compared to 0.5 % consensus) this along with hopes of the Irish border resolution ahead of the EU summit will keep GBP bulls interested. In the Asian equities space, the Nikkei 225 closed up 1.08% at 23,672, Hang Seng closed 1.19% at 27407.37 and Kospi ended -0.02% at 2308.46. The European equities were trading mixed with the FTSE -0.22% at 7284.2, DAX 0.19% at 12180.72, and CAC 0.32% at 5381.15. In the rates market, global yields were trading firmer; the US 10-year yield was trading at 3.0645% and the Bund 10-year yield trading at 0.492%. In the energy space, the Brent (front month) is trading up (0.04%) for the day at $79.06.



Economic Calendar



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 1.1660 for 1.1765
Short-term view: EUR/USD support comes in at 1.1660, RSI is looking to improve. Hence, we see an upside to 1.1765. Below 1.1660 to open 1.1609



GBPUSD Chart (Two-week)



Strategy: Support at 1.3119 for 1.3296
Short-term view: GBP/USD support comes in at 1.3119 and momentum is improving. Hence, we see an upside to 1.3296. Below 1.3119 to open 1.3066



USDJPY Chart (Two-week)



Strategy: Resistance at 112.60 for 111.89
Short-term view: USD/JPY resistance at 112.60, MACD is flat and RSI looking to move below 50. Hence, we see a downside to 111.89. Above 112.60 to open 113.00



AUDUSD Chart (Two-week)



Strategy: Support at 0.7196 for 0.7279
Short-term view: AUD/USD support comes in at 0.7196, MACD is primarily bullish and RSI is above 50. Hence we see an upside to 0.7279. Below 0.7196 to open 0.7168



BTCUSD Chart (Two-week)




Strategy: Resistance at 6314.64 for 5990.79
Short-term view: BTC/USD support comes in at 6305.79, MACD crossover suggests a bullish bias and RSI is above 50. Hence we see an upside to 6470.42. Below 6305.79 to open 6229.21


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