The following are UBS' latest short-term (mostly intraday) trading strategies for EUR/USD, USD/JPY, and AUD/USD.
EUR/USD: is still trading with a bid tone. We prefer to remain short with plenty of chances to cover on intraday dips. The big reistance is the double top from mid-September, just north of 1.1450, where we would enter shorts with stops above 1.1510. The pair should have buying interest ahead of 1.1300-20 on the downside, which means that the range play can continue.
USD/JPY: Risk sentiment did not really improve overnight given the weak China CPI. While yen crosses took a hit, mainly against the China-sensitive currencies AUD and NZD, USDJPY seems to have bids stacked up on the way down. The overall picture however does not look constructive in the short term and topside might be limited intraday. Sell at 119.80/90 with a stop above 120.20.
AUD/USD: sold off from 0.7260 with with regional equities all trading soft and more pressure on RBA to ease further. We like selling the pair around 0.7260-0.7280 with stops above 0.7300, targeting 0.7180.
