Range Markets

JPY and NZD are the top G10 FX gainer today, up +0.38% and +0.08% while SEK and GBP are the top losers down -0.28% each versus the dollar. The USD-index is now trading in a very narrow range of 95-95.50; a break either side is likely to show short-term direction. Overnight, the Chinese trade data was positive for risk as both imports and exports reported above expected growth. Elsewhere, Cable fell to an 11-month low on Brexit fears; investors are worried that UK will not be able to secure a trade deal with the EU. In the Asian equities today, the Nikkei 225 closed -0.08% at 22,644, Kospi ended +0.06% at 2,301 and Hang Seng closed +0.39% at 28,359. In the European equity space, FTSE 100 was trading up +0.26%, DAX was down -0.21%, and CAC was down -0.11%. In the rates market, global yields are trading flat for the day with the US 10-year yield trading at 2.97% and the Bund 10-year yield trading at 0.41%. In the energy space, the Brent (front month) is trading firmer for the day at $74.65; next resistance at $75.50. In terms of data, there is no tier one release today. Looking ahead, the UK GDP growth rate and the US inflation rate are some of the key releases this week.


10-Year Yields Daily chart (6-month)



USD-Index Daily chart (2-month)



Brent Front Month Daily chart (6-month)



Trade weighted basket Hourly (one-week)




Major Currency Pairs


EURUSD Chart (Two-week)



Strategy: Support at 1.1563 for 1.1622
Short-term view: EUR/USD MACD has turned positive and support comes in at 1.1563. Hence we see an upside to 1.1622, possibly 1.1674. Below 1.1563 to open 1.1531.



GBPUSD Chart (Two-week)



Strategy: Resistance at 1.2945 for 1.2844
Short-term view: GBP/USD daily pivot resistance at 1.2945 and MACD is looking to turn dow from near the zero line. Hence, we see a dip to 1.2844. Above 1.2945 to open 1.2996.



USDJPY Chart (Two-week)



Strategy: Resistance at 111.27 for 110.60
Short-term view: USD/JPY MACD is falling from near zero line and pivot at 111.27. Hence we see a dip to 110.60. Above 111.27 to open 111.55



AUDUSD Chart (Two-week)



Strategy: Support at .7387 for .7474
Short-term view: AUD/USD MACD is trending up and pivot supports at 0.7387. Hence we see an upside to 0.7440, possibly 0.7474. Below 0.7387 to open 0.7362.



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