US Open – 16.04.14

EURUSD – Weaker than expected German ZEW aided EUR lower yesterday morning as we broke through 1.3800.  However and we failed to break substantially lower and now find ourselves up at 1.3840. Overall, EUR continues to trade in a very tight range this week. On the day first support will be at 1.3800 followed by 1.3740/50 with topside resistance at 1.3850 and 1.3900.

GBPUSD – Cable broke out of its range after good employment data and we are now eyeing 1.6820. Our in house Algo which you can find in the members area gave a signal to sell EURGBP and is now well onside. We like sticking with that short trade and it signals more strength for the sterling across the board.

USDJPY – A good session for USDJPY finally after US stocks recovered and price action was more upbeat with demand noted through the 102.00 congestion that has capped recently. The grind continues into the Asian session with comments suggesting the cabinet will downgrade its economic outlook in a monthly report that will be published tomorrow, this aided the bullish price action in the Nikkei and USDJPY. Could go higher on the break of 102.50. We have also added a long position on EURJPY on the break of 140.80 which then kept the bullish trend by break 141 and now trading 70 points onside.

AUDUSD – Busy overnight session for AUD and NZD with better Chinese data vs weaker NZD CPI driving AUDNZD through 1.0900 and aiding AUD off the lows at 0.9330 to meet resistance up at 0.9380. We saw a general risk off move yesterday afternoon with both AUD and NZD suffering severe declines vs. USD and JPY. We are looking to buy this dip and targeting a move back up to 0.9450.

USDCAD – BoC at 15:00 today is the key for USDCAD with all eyes on Poloz who is likely to downplay the growth outlook whilst upgrading the inflation landscape and so it will depend on the extent he weighs on these two variables as to whether he is perceived dovish/hawkish. We know how dovish he was last month but be aware of Central Banker’s ability to change their tune unexpectedly. Levels on the day will be 1.0950 and 1.0880 to the downside with resistance up at 1.1050/60 followed by 1.1100

As for other news today keep an eye out on the US building permits at 1:30 pm BST and the CAD data that we mentioned.

Have a good day and good luck trading.