Attention today will primarily be on retail sales in the US. G10 seems confused with the CNY movement, therefore we think bullish EURUSD seems to be cleanest story. Our favorite commodity currency short continues to be the CAD where we think buying on dips makes sense. In the UK, weak earnings data keeps the pressure on the pound as well as the curve with expectations for near term tightening unravelling.
{EU} EURUSD Neutral => Look for resistance towards 1.1215 (late July’s highs) and support levels at 1.1100 with 1.1050 afterwards.
{JN} USDJPY Neutral => On the topside 125.28 and then 125.86 are the levels to keep an eye on – expect accounts to lighten on longs on a 125 handle; 123.80 keeps being our support level.
{GB} GBPUSD Neutral => Levels: support yesterday’s lows of 1.5535 with 1.5661 topside, EURGBP 0.7080 – 0.7174 (100dma).
{NZ} NZDUSD Neutral => Key levels for the session: Resistance at 0.6740 and support at 0.6550 and 0.6468 afterwards.
{AU} AUDUSD Lower => We still favor the pair lower with key levels for the session: 0.7440/50 resistance with 0.7300 as support on the downside.
{CA} USDCAD Higher => We like the pair higher with important technical levels: support levels at 1.2915 and 1.2880 below, with 1.3065 as the top of the trendline.
{SZ} USDCHF Neutral => We are now neutral on the pair with key technical levels: Support at 0.9778. Resistance above lies at 0.9900.
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