Trade Ideas For EUR/USD, USD/JPY, AUD/USD, NZD/USD, USD/CAD - UBS
The following are UBS' latest short-term (mostly intraday) trading strategies for EUR/USD, USD/JPY, AUD/USD, NZD/USD, and USD/CAD.
EUR/USD: is trading heavy but we prefer to remain patient, looking for a move towards 1.0780/1.0800 before getting involved. Flows have been mixed, but we have seen a clear bias to the downside and expect this to continue. Watch out for the FOMC's December meeting minutes today.
USD/JPY: Another shaky session in terms of risk in Asia today, with a higher USDCNY fix and North Korea's nuclear test. USDJPY broke through the support from the past two days at 118.70/80. The selling interest we have seen has been limited, but bounces remain shallow. Look to play the pair for the short side.
AUD/USD: price action remains soft and the pair moved lower in Asia today on the back of more weak data from China and concerns over North Korea's nuclear test...We still see AUDUSD moving lower, but the pair is approaching decent support, with an uptrend line dating back to September coming in around 0.7070, which was also the November low. Look to trim shorts ahead of here in order to sell at 0.7150/80. A clear break would open up a test of the 2015 low of 0.6907.
NZD/USD: continues to move lower, driven by US dollar demand and lower GDT prices. We see NZDUSD heading lower still, but the pair is already off by 3% since the beginning of the week and the risk of a correction is rising. Trim shorts between 0.6580 and 0.6610 in order to sell closer to 0.6750.
USD/CAD: broke above 1.4000 in thin markets driven by risk aversion and soft commodity prices. Liquidity remains very poor and intraday price action is accordingly volatile. The pair is trading at a 12-year high, so stay flexible.
