US Open 14.04.14

EURUSD – This is the the quote that we are walking into this morning from Draghi: “The strengthening of the exchange rate would require, to make our monetary policy stance to remain equally accommodative, it would require further monetary policy accommodation, the strengthening of the exchange rate requires further monetary stimulus. That’s an important dimension for our price stability.”  So Draghi has tried to talk the EUR down without actually doing anything. Lets see how it works out for him. It has opened lower and we are still in our ranges. The support being at 1.3800 and 1.3740/50 with resistance at 1.3900. It is now trading at around 1.38200 and we are waiting for something to happen. It is range trading today and we would look to pick up the Euro if the level holds or sell it on the break.

USDCAD – after a surprise rally at the end of the trading week the pair has closed above the 100 EMA and technically the trend might have reversed, that is of course if you believe in dollar strength.  The support being at 1.0950 and then 1.0920 while resistance should come to play as we approach 1.10. We like to buy it on dips if the support holds.

USDJPY – the level of 101.40 has held and would have been a good point to enter a long if that is the direction you want to trade. We are looking to go short here though and the intra-day levels are 101.40 which we already mentioned and then 101.00 for the support with the resistance coming in at 102.00. Kuroda speaks on Wednesday and Thursday this week and a continuation of his upbeat commentary on the economy should keep JPY bids in play. We also hear from Yellen and the risk is that she continues to backtrack on the hawkishness displayed 2 weeks ago. It is trading around 101.70 right now and we would be looking to go short at around 102.00 with a stop around 30 points away looking to take 60 and then 90 if it breaks through.

AUDUSD – traded above 0.94 once again. This was our target from a month ago where we have picked up 350 points. The next resistance comes in at 0.9450 with the support being 0.9360 and then 0.93 bellow. RBA minutes and RBNZ this week but little surprises are expected from either. The trend is bullish so we are buying on dips here.

GBPUSD – No data of note so it is range trading between 1.6690 and 1.6830. If you want to find out more about range trading you can contact us at denis.taranov@savitrading.com

Good luck trading and have a good week.