FX Strategy 30 Jul 18 

SEK and NOK are the top G10 FX gainers, up 0.69% & 0.31% respectively today while AUD and CAD are the top losers down -0.05% each vs the dollar, respectively. In the equities space today, the Nikkei 225 closed lower, down -0.74% at 22,544, Hang Seng closed -0.25% at 28,733 while the Kospi fell -0.06% to 2,293. The European equity indices are again mixed so far this morning, with FTSE 100 up +0.06%, DAX down -0.27%, and CAC down -0.36% at the time of writing. In In ttehrems e nof yergyie sldpasce, the Brent (front month) is trading firm at $74.74; next resistance at $75.50. Overnight, the Japanese retail sales came in stronger than expected (1.8% YoY versus 1.6% consensus). The Euro-area business confidence came in weaker than expected but this has not had much impact on EUR. Elsewhere, SEK GDP Growth rate for the second quarter came in unexpectedly strong at 3.3% versus 2.6% expectations. In terms of data today, the German inflation rate (preliminary) at 1300 GMT and the Dallas Manufacturing index are the only data of note. Looking ahead at the week, we have three major central banks including Fed, BoE, and BoJ. The manufacturing PMI will be released from across the globe along with GDP from Euro-area and Canada.

 

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 1.1623 for 1.1737
Short-term view: EUR/USD has support at 1.1623and MACD is bottoming, hence, we see a bounce to 1.1693 & 1.1737. A break below 1.1623 to open 1.1593. 

 

 

GBPUSD Chart (Two-week)

 

 

Strategy: Support at 1.3082 for 1.3204
Short-term view: GBP/USD support at 1.3082 and MACD is bottoming. Hence, we se a bounce to 1.3204. Below 1.3082 to open 1.3043.

 

 

USDJPY Chart (Two-week)

 

 

Strategy: Support at 110.75 for 111.61
Short-term view: USD/JPY has support at 110.75, left a doji on Monday’s candle and MACD is looking to move higher. Hence, we see a bounce to 111.61, possibly 112.10. A break below 110.75 to open 110.39.

 

 

AUDUSD Chart (Two-week)

 

 

Strategy: Support at .7362 for .7440
Short-term view: AUD/USD has support at .7362 and MACD is supportive. Hence we see a bounce to .7440. Below .7362 to open .7334.

 

 



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