FX Strategy 22 Oct 18 

CAD and SEK are the top G10 FX gainers today, up 0.09% and 0.09% vs the dollar while JPY and AUD are the top losers, down -0.23% and -0.2% vs the dollar. EUR recovered after Italian yields fell bringing a calm to the markets; Moody’s downgraded Italian credit ratings on Friday but kept the outlook stable. Sterling remained under pressure as Brexit worries capped gains. Elsewhere, the promise of more Chinese stimulus helped investor’s sentiments. In the Asian equities space, the Nikkei 225 closed 0.37% higher at 22,614.82, Hang Seng closed 2.32% at 26153.15 and Kospi ended 0.25% at 2161.71. The European equities were trading firm with the FTSE up +0.1% at 7057.17, DAX up +0.44% at 11604.56, and CAC up +0.16% at 5092.64. In the rates market, global yields were trading mixed; the US 10-year yield was trading at 3.1997% and the Bund 10-year yield trading at 0.468%. In the energy space, the Brent (front month) is trading up (0.55%) for the day at $80.22


Economic Calendar



10-year yields (6-month)



USD-Index Daily Chart (5-month)



Brent Front Month Daily Chart (6-month)



Trade Weighted Basket Hourly (one-week)



Major Currency Pairs


EURUSD Chart (Two-week)



Strategy: Support at 1.1480 for 1.1600
Short-term view: EUR/USD support at 1.1480, MACD and RSI are both bullish. Hence, we see a bounce to 1.1600, possibly 1.1650. Below 1.1480 to open 1.1414



GBPUSD Chart (Two-week)



Strategy: Resistance at 1.3096 for 1.2948
Short-term view: GBP/USD resistance at 1.3096, MACD and RSI have a bearish bias. Hence, we see a correction lower towards 1.3000, possibly 1.2948. Above 1.3096 to open 1.3150



USDJPY Chart (Two-week)



Strategy: Support at 112.15 for 113.15
Short-term view: USD/JPY support at 112.15, a base is under completion and RSI has turned over 50. Hence, we see a bounce to 113.15, possibly 113.58. Below 112.15 to open 111.39



AUDUSD Chart (Two-week)



Strategy: Resistance at 0.7130 for 0.7055
Short-term view: AUD/USD resistance at 0.7130, MACD and RSI are bearish. Hence, we are likely to see a dip back to 0.7086, possibly .7055. Above 0.7130 to open .7160.


Add a comment