The following are UBS' latest short-term (mostly intraday) trading strategies for EUR/USD, AUD/USD, and USD/CAD.
EUR/USD: The two likeliest outcomes for today's FOMC meeting are a 'dovish hike' or a 'hawkish hold'. Regardless of today's decision, the US dollar should continue to gain ground against euro as the divergence between the monetary policy of the Fed and ECB is clear. Intraday, it is less simple. Look to sell the pair into 1.1320/30, with a stop above this week's high of 1.1375.
AUD/USD: We expect the pair to trade between 0.7150 and 0.7220-50 ahead of tonight's FOMC meeting. After that, AUD price action should be torn between the US dollar and risk sentiment. A break above 0.7250 would open the way for an extended correction toward 0.7400. There is decent support at 0.7120.
USD/CAD: We still favour short USDCAD, trimming positions ahead of support at 1.3120 and adding into rallies towards 1.3300 with stops above 1.3360.
