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: The fall below 114.25 for USDJPY gave EURUSD a boost. Markets are very nervous with risk selling off and poor liquidity. We expect sellers ahead of 1.1250, while buyers should emerge on moves closer to 1.1100.
USD/JPY: Risk has sold off heavily today, and USDJPY broke through the support at 116.00/25 to trade all the way down to a low of 114.22. The flows we saw on the back of this were fairly light and some positions seem to have been cut on the drop below 118 the other day. The main question is: when will the BoJ get vocal? It certainly can't be happy with how things have turned out after its January meeting. The market is nervous and bounces off the lows can be severe. In the current risk environment, we prefer selling on rallies to the resistance at 116.00/25.
AUD/USD: was dragged down today in Asia, with AUDJPY following the Nikkei lower. Monitor price action in commodities today, with a bias to buy AUDUSD on dips to 0.7000.
NZD/USD: The pair has broken through the 55 and 100-day moving averages, but seems to have run into support below 0.6575/50, where we like establishing longs.
USD/CAD: There is major resistance at 1.4100, which was the high before the recent move down to 1.3600. Monitor price action in commodities today and stay flexible, willing to sell USDCAD ahead of 1.4050.
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