Monday, September 21, 2020

FX Strategy 21 Sep 2020

 
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FX Strategy 21 Sep 2020

 

In the G10 FX Market, AUD and GBP are the top gainers today, up 0.38% and 0.3% versus the dollar while NOK and USD are the top losers. In the rates market, global yields were trading mixed today. The UK 10-year was trading at 0.191, up 0.5bp. The German 10-year was trading at -0.482, up 0.1bp. The US 10-year was trading at 0.69, down -0.7bp.

 

In the Asian equities, markets were trading weaker today. The Kospi was trading at 2389.39, down -0.95%. The Hang Seng was trading at 24015.0, down -1.8%. In the European equities, indices were trading weak today. The Euro Stoxx 50 was trading at 3251.65, down -0.98%. The FTSE 100 was trading at 5908.98, down -1.63%. The DAX 30 was trading at 12977.95, down -1.05%.

 

Looking at Equity Futures so far, the SP500 Futures was trading at 3301.62, down -0.46%. The Euro Stoxx 50 Futures was trading at 3241.0, down -2.32%. The FTSE100 Futures was trading at 5879.5, down -2.89%.

 

In the Energy space, Oil futures were trading weak today. The WTI Crude Futures was trading at 40.84, down -0.66%. The Brent Crude Futures was trading at 42.69, down -1.07%.

 

Today we have a relatively quiet day on terms of economic data releases. At 08:00 GMT we have July's Balance of Trade from Spain (Previous €1.48B v €0.9B) and the BCB Focus Market Readout at 11:30 GMT. This afternoon we have (August) Canadian New Housing Price Index YoY (Previous 1.7% v 1.9%) and MoM (Previous 0.4% v 0.2%) and Chicago Fed National Activity Index (Previous 1.18 v 1.8) both are released at 12:30 GMT. ECB's President Lagarde is speaking at 12:45 GMT. At 16:00 GMT, Fed's Brainard is speaking also.

 

Later this evening we have South Korean PPI YoY (Previous -0.8% v -0.7%) and MoM (Previous 0.2% v 0.3%) for August, with Fed's Kaplan and Williams both speaking at 22:00 GMT.

 

10-Year Yields Daily Chart (1-month)

 
 

Daily FX Pivots

 
 

Brent Crude Daily Chart (1-month)

 
 

Forex Chart and Technical Analysis

 

EURUSD Chart (Two-week)

 
 

Strategy: Support at 1.1821 for 1.189
Short-term view: EURUSD support comes in at 1.1821 MACD and RSI have a bullish bias. Hence, we see a bounce to 1.189 enter at 1.1844. Below 1.1821 to open 1.1801

 

GBPUSD Chart (Two-week)

 
 

Strategy: Resistance at 1.303 for 1.2888
Short-term view: GBPUSD resistance comes in at 1.303 MACD and RSI have a bearish bias. Hence, we see a dip to 1.2888 enter at 1.2983. Above 1.303 to open 1.306

 

USDJPY Chart (Two-week)

 
 

Strategy: Support at 103.97 for 104.57
Short-term view: USDJPY MACD and RSI are flat but support comes in at 103.97 and we see a rise to 104.57 enter at 104.17. Below 103.97 to open 103.67

 

AUDUSD Chart (Two-week)

 
 

Strategy: Support at 0.7302 for 0.7354
Short-term view: AUDUSD MACD and RSI are flat but support comes in at 0.7302 and we see a rise to 0.7354 enter at 0.7317. Below 0.7302 to open 0.727

 
 
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