Littlefish FX | Oct 28, 2013 02:01AM ET
With the FOMC meeting looming this week, all hopes of a taper have been dashed and confirmation of no taper is to be expected. This may have largely been priced into the dollar already though so we may see a strengthening in that respect away from oversold as the price action returns to a more normal market-led price action rather than central bank led price action. As such, the recent dollar battering may take a breather to allow a relief rally to bring the order books back to sensible levels again before any continuation of the dollar selling.
The pound looks likely to correct lower although the bullishness of the EUR/GBP may keep EUR/USD afloat perhaps a little longer.
Australian dollar having corrected lower seems to be resisting the drop more than NZD, and could eventually see a bounce to set it’s sights on parity once again, although for the mean time remains a sell.
JPY is quite a frustrating trade currently, with sharp yet not very long lasting movements. Dollar strength this week may see a return to bullishness for USD/JPY, although much remains in the hands of the performance of the Nikkei 225, which recently triggered a sharp drop in the dollar and significant Yen strength. The Japanese stock index has recently met support though having bounced from the bottom of the daily Ichimoku kumo, although a drop lower to meet a confluence of bullish trend line support and weekly S1 support may still be possible and the outlook is slightly uncertain in the short term.
This week’s data focus is on the following releases:
Monday Oct 28
2:00pm USD Pending Home Sales
10:30pm AUD RBA Gov Stevens Speaks
Tuesday Oct 29
12:30pm USD Core Retail Sales
12:30pm USD PPI m/m
12:30pm USD Retail Sales
2:00pm USD CB Consumer Confidence
Wednesday Oct 30
12:15pm USD ADP Non-Farm Employment Change
12:30pm USD Core CPI
6:00pm USD FOMC Statement
8:00pm NZD Official Cash Rate
8:00pm NZD RBNZ Rate Statement
Thursday Oct 31
12:00am NZD ANZ Business Confidence
12:30am AUD Building Approvals
TBC JPY Monetary Policy Statement
TBC JPY BOJ Press Conference
12:30pm USD Unemployment Claims
Friday Nov 1
12:30am AUD PPI
1:00am CNY Manufacturing PMI
9:30am GBP Manufacturing PMI
2:00pm USD ISM Manufacturing PMI
All times are London time (GMT)
USD% Index
USD% Index Resistance (EUR/USD support): EUR/USD 1.3732, 1.3700, 1.3650
USD% Index Support (EUR/USD support): EUR/USD 1.3819, 1.3838, 1.3850
EUR% Index
EUR% Index Resistance: EUR/USD 1.3838, 1.3867
EUR% Index Support: EUR/USD 1.3800, 1.3789, 1.3700
EUR/USD Trade Positioning
Short from 1.3785, stops at 1,3944
JPY% Index
JPY% Index Resistance (USD/JPY Support): USD/JPY 97.31, 96.88
JPY% Index Support (USD/JPY Resistance): USD/JPY 98.00, 98.40, 99.00
USD/JPY Trade Positioning
Long from 97.35 , Stops at 95.77
Nikkei 225
GBP% Index Resistance: GBP/USD 1.6213, 1.6317, 1.6377
GBP% Index Support: GBP/USD 1.6090, 1.6020, 1.6000
GBP/USD Trade Positioning
Short from 1.6182, stops at 1,6198
AUD% Index
AUD% Index Resistance: AUD/USD 0.9633, 0.9650, 0.9700
AUD% Index Support: AUD/USD 0.95534, 0.95550, 0.9538
AUD/USD Trade Positioning
Short from 0.9623, stops at 0.9778
NZD/USD Trade Positioning
Short from 0.8414, stops at 0.8580
CHF% Index
I am bearish CHF
CHF% Index Resistance (USD/CHF support): USD/CHF 0.8876
CHF% Index Support (USD/CHF resistance): USD/CHF 0.8931, 0.8955, 0.8986
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