In forex, the markets are watching a fixed game with the USD/Chines yuan (USD/CNY), leaving plenty o...
Trading Strategies on the Euro, Yen, Pound, and Loonie
10/08/2014 9:00 am EST
Adam Button of ForexLive.com shares UBS’ latest short-term trading strategies on four of the major currency pairs.
The following are UBS’ latest short-term (mostly intraday) trading strategies:
EUR/USD: traded back above the pre-NFP levels early on the back of the broad-based dollar correction. We still expect the pair to head lower overall, but have squared positions for now, and will only re-sell closer to 1.2700. We expect buying interest below 1.2600 intraday, but sellers will be lined up above 1.2700.
USD/JPY: is leading other pairs on this dollar dip with Nikkei down half a %. We could see the move gaining momentum and some follow through. Sell USD/JPY rallies to 108.80-109.00 with stops above 109.20, targeting 108.00.
GBP/USD: Cable squeezed back above 1.6000. Support seems to be holding at 1.5950-40, pushing the pair above 1.6100 as the dollar lost more ground early in Europe. Watch next resistance at 1.6161 ahead of 1.6210. Buy on dips to 1.6075-70 with a stop below 1.6040, for a move back above 1.6150.
USD/CAD: failed to break above 1.1279 after the US payrolls and slipped to 1.1129 on some profit taking in dollar longs overnight. Buy on dips towards last week’s lows at 1.1072 with stops below 1.1023, the 38.2% retracement of the July-October uptrend.
By Adam Button, Editor, ForexLive.com
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