The following are UBS' latest short-term (mostly intraday) trading strategies for EUR/USD, USD/JPY, and AUD/USD.
EUR/USD: is still flipping around in the 1.1000-1.1550 range with the Greece impasse continuing. The pair is finding it extremely difficult to even break through 1.1250-1.1500. Stay flexible but with a bias to go short at current levels near 1.1380 with a stop at 1.1450. Flows have been mixed with no clear direction.
USD/JPY: will likely struggle to rally, but the long dollar story should be intact in the midterm. We therefore prefer buying at 118.20/30 with a stop below 117.70.
AUD/USD: was bid in Asia as the RBA minutes were less dovish than market expectations. Short covering pushed spot up to 0.7809 from 0.7741. We still prefer selling rallies as we are sceptical on risk given the elevated tensions in Greece and Ukraine. Fade moves to 0.7850 with stops above 0.7930, targeting 0.7650, the lower end of the trading range.
