GS: G10 FX – LONDON SPOT TRADER VIEWS
OVERVIEW => The USD has been stronger across the G10s overnight with the Antipodean currencies leading the losses. Our main bias continues to be EURUSD lower followed by USDJPY higher. We see a quiet week ahead for the US with no significant Fed speakers though PCE on Wednesday should be of interest. Today’s data focus in on flash PMIs.
{EU} EURUSD Lower => The market seemed to view the lack of immediate downside after the very dovish comments by Draghi on Friday as a warning of an imminent squeeze and we saw leverage players reducing shorts . Now the market is feeling a touch under positioned into the ECB and it feels as though the currency is more likely to drift lower. Bias is for a core short and only looking to fade rallies rather than add on new lows. Key levels: support at 1.0500 with the resistance at 1.0680.
{JN} USDJPY Higher => Wednesday’s US release of durable goods and PCE data will be of interest as will Japan’s CPI data on Friday yet in the meantime JPY is set to remain a low beta expression of a USD view and the Thanksgiving holiday a convenient excuse for lower volumes. Bias within the context of a range that ultimately should break to the topside is still to buy dips. Key levels: support at 122.23 (post Paris low) and resistance at 123.76.
{AU} AUDUSD Lower => We continue to have a bias for Aussie lower after the strong rally last week. Key levels for today’s session: resistance at 0.7250 (Friday’s high) with support at 0.7142 (55dma) and 0.7069 below.
{CA} USDCAD Higher => We continue to like the pair higher. Key levels: support at 1.3247 with 1.3457 (Cycle high from the end of September) as the resistance.
{SZ} USDCHF Higher => We continue to like USDCHF higher on the SNB possibly reacting to further ECB easing in December. Key levels for the session: resistance at 1.0240 and support at 1.0090 (last Tuesday’s low).
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