Trade Ideas For EUR/USD, USD/CHF, AUD/USD, USD/CAD - UBS
The following are UBS' latest short-term (mostly intraday) trading strategies for EUR/USD, USD/CHF, AUD/USD and USD/CAD.
EUR/USD: remains stuck in a tight range, with selling interest ahead of 1.1000 and buyers below 1.0800. There is likely to be a test above 1.1000 at some point, but there would need to be some news for this move, and overall we have no interest in playing longs.
USD/CHF: CHF flows are biased to sell and remarks from SNB Governor Jordan on how the central bank is committed to its path have supported that trend. News about a major M&A deal worth CHF43.7 bn between a Swiss and Chinese firm was confirmed this morning. The deal will be all cash and is likely to have a huge impact on the market. Continue to play the ranges and trade the extremes.
AUD/USD: The pair is still stuck within its recent range and a break through 0.6980 would be needed to develop further momentum to the downside. Australian data was mixed today. Look to buy dips around 0.7000, with a stop through 0.6970, targeting a move towards 0.7150/0.7200.
USD/CAD: has been playing catch up after the big drop in oil prices over the past three days. However, given the close correlation the pair has had with oil in recent months, this latest move has been rather muted. We prefer selling on rallies, but remain cautious about a further catch-up with the fresh oil selloff. Sell into rallies between 1.4170 and 1.4200, with a stop above 1.4340, targeting a test of 1.3900.
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