Range Markets

EUR is the top FX G10 gainer today, up +0.15% (vs USD) while JPY and CAD are the top losers down -0.41% and -0.36%(vs USD), respectively. In the equities space, the Asian markets have risen today with the Nikkei 225 ending the day +0.48% higher at 22,804 and Hang Seng finishing up +0.34% at 31,063. The European equity indices have a similar story, with the FTSE up +0.53%, DAX up +0.42%, and CAC up + 0.13%. In the rates market, the yields have opened up with the gap with US 10-year yield trading at 2.96% and the Bund 10-year yield trading at 0.47%. In the energy space, the Brent front month is trading slightly weaker for the day at $76.17, after failing to break above the bear channel on Friday (now at $77.01). In terms of data today, the UK industrial production fell unexpectedly (-0.8% actual vs 0.2% expected) and manufacturing production numbers underwhelmed (1.4% actual vs 3.1% consensus). Looking ahead the Economic Calendar is packed over the coming days; the ECB rates decision, UK employment report, UK CPI, Australian jobs report, US inflation, US retail sales, Fed and BoJ rates decision are some of the key releases due this week.


10-Year Yields Daily chart (6-month)



USD-Index Daily chart (2-month)



Brent Front Month Daily chart (2-month)



Trade weighted basket Hourly (one-week)




Major Currency Pairs


EURUSD Chart (Two-week)



Strategy: Resistance at 1.1838 for 1.1735
Short-term view: EUR/USD has resistance at 1.1838 and MACD has entered the negative area. Hence, we see a deeper setback to 1.1700-1.1735. Above 1.1838 to open 1.1875.


GBPUSD Chart (Two-week)



Strategy: Resistance at 1.3415 to open 1.3296
Short-term view: GBP/USD broken a bull channel and MACD has entered negative territory. Hence, we see a dip to 1.3296-1.3320. A break above 1.3415 to open 1.3487.


USDJPY Chart (Two-week)



Strategy: Resistance at 110.21 for 109.53
Short-term view: USD/JPY has resistance at 110.21 and MACD has moved below the zero line. Hence, we see likelihood of another dip to 109.53. A break above 110.21 to open 110.65


AUDUSD Chart (Two-week)



Strategy: Resistance at 0.7603 for .7530
Short-term view: AUD/USD has completed a double top and MACD has turned negative. Hence, we may see a dip to .7552. Above .7627 to open .7653


BTCUSD 4-Hour Chart (Two-month)



(Chart by Reuters)


Strategy: Support at $6400 for $7073
Short-term view: BTC/USD bear channel base comes in around 6401 and hence we are looking for a correction within the channel to 7073, possibly 7356. Below 6404 is likely to accelerate losses to 6000.


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