Range Markets

In the G10 currencies, the top gainers are NOK and JPY, up 0.65% and 031%, respectively (versus USD). AUD is the top G10 loser down 0.14% versus the dollar. NOK was buoyed by the Norges Bank Governor Olsen confirming a rate hike post-summer. Overall risk sentiments remained lacklustre with JPY getting a bid in early hours of trading. SNB kept rates on hold as expected and we haven’t seen much of a reaction in CHF. Elsewhere, NZD GDP disappointed but NZD held on to its recent gains. In the Equities space, the Nikkei 225 has closed higher by 0.12% at 21,803 recovering after the lunch break. The European equities have also opened firmer with FTSE at +0.1%, DAX at +0.4% and CAC at +0.4%. In the rates market, the US and Bund 10-year yields continue to decline since Monday with US 10-year at 2.82% and the Bund 10-year yield at 0.59%. In the energy space, the Brent front month is trading at $64.85, moving sideways over the past two days. In terms of data, the Swedish unemployment fell unexpectedly (6.3% actual vs 7.0% expected), leading to a further rise in SEK. Looking ahead, there is no tier one release from the US but we have Philly and NY manufacturing index. The focus is likely to remain on tariff wars. 



USD-Index Daily chart (2-month)



Brent Front month Daily chart (2-Month)




Major Currency Pairs


EURUSD Chart (Two-week)



Strategy: Support at 1.2336 for 1.2432
Short-term view: EUR/USD has support at 1.2336 and MACD is still above the zero line. Hence, expect a bounce to 1.2432. Below 1.2336 to open 1.2289.


GBPUSD Chart (Two-week)



Strategy: Resistance at 1.3993 for 1.3900
Short-term view: GBP/USD has resistance at 1.3993 and momentum on daily chart is still weak. Hence, we may see a dip to 1.3900. Above 1.3993 to open 1.4028


USDJPY Chart (Two-week)



Strategy: Resistance at 106.41 for 105.50
Short-term view: USD/JPY resistance comes in at 106.41 and short-term momentum is still weak. Hence, we may see a dip to 105.50. Above 106.41 to open 106.98


AUDUSD Chart (Two-week)



Strategy: Resistance at 0.7892 for .7859
Short-term view: AUD/USD has resistance at .7892 and short-term moving averages are stalling. Hence, we expect a dip to .7859, possibly .7834. Above .7892 to open .7922


BTCUSD Hourly Chart (Two-week)



(Chart by Reuters)


Strategy: Support at $7950 for $8597
Short-term view: BTC/USD MACD is looking to correct from the oversold area and support has been established at 7950. Hence, we expect a bounce to 8597. Below 7950 to open open towards 7500.

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