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FX Strategy 01 Aug 19

Updated 04:59PM 02/08/2019

FX Strategy 01 Aug 19

 

AUD and NZD are the top G10 FX gainers today, up 0.13% and 0.06% vs the dollar while GBP and JPY are the top losers, down -0.37% and -0.29% vs the dollar. Strong U.S. Dollar, post-FOMC 25bp rate cut, sent Euro to 26-month lows; Fed Chair Powell said "It's not the beginning of a long series of rate cuts" but he also said that this is not a one-off rate cut. Elsewhere, GBPUSD slipped to a 30-month low due to a strong dollar. We expect Sterling weakness to continues as the market will price in more "no deal" uncertainity in the weeks ahead. In the Asian equities space, the Nikkei 225 closed up 0.09% at 21,540.99, Hang Seng closed -0.76% at 27565.7 and Kospi ended -0.36% at 2017.34. The European equities were trading mixed with the FTSE -0.34% at 7560.64, DAX -0.19% at 12166.47, and CAC 0.14% at 5526.47. In the rates market, global yields were trading firmer; the US 10-year yield was trading at 2.0595% and the Bund 10-year yield trading at -0.417%. In the energy space, the Brent (front month) is trading down (-1.55%) for the day at $64.16.

 

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Daily Pivots for Key Currency Pairs

 
 

Economic Calendar

 
 

10-year Yields Chart (6-month)

 
 

USD-Index Daily Chart (6-month)

 
 

Brent Front Month Daily Chart (6-month)

 
 

Trade Weighted Basket Hourly (two-week)

 
 

(Content and Data by Tradermade)

 

Major Currency Pairs

 

EURUSD Chart (Two-week)

 
 

Strategy: Resistance at 1.1078 for 1.0950
Short-term view: EUR/USD resistance at 1.1078, a move lower targets key points at 1.1019 and 1.10950. Above 1.1078 to open 1.1110 and possibly 1.1167.

 

GBPUSD Chart (Two-week)

 
 

Strategy: Resistance at 1.2181 for 1.2046
Short-term view: GBP/USD resistance at 1.2181 momentum is bearish and we see a deeper dip to 1.2046, likely 1.2000. Above 1.2181 to open 1.2243, 1.2306.

 

USDJPY Chart (Two-week)

 
 

Strategy: Support at 108.81 for 109.47
Short-term view: USD/JPY has support around 108.81, momentum is improving hence, we see a move higher to 109.47 and 110.00. Below 108.81 opens 108.43 and 108.15 in the short-term

 

AUDUSD Chart (Two-week)

 
 

Strategy: Resistance at 0.6869 for 0.6771
Short-term view: AUD/USD short-term downtrend continues, we look for resistance at 0.6869 for a move lower towards 0.6771. Above 0.6869 we look for 0.6920 in the immediate short-term.