FX Majors Outlook

From the FXWW Chatroom: EUR-USD We continue to see support for the pair in the current skittish 
risk environment, with the 55-day MA (1.0824) offering support on the 
downside while the key psychological 1.1000 resistance remains visible. On 
the CFTC front, note that net leverage EUR shorts were pared in the latest 

  USD-JPY USD-JPY may continue to probe the downside given current 
market conditions as investors fell risk-related assets/currencies with 116.50 
expected to be the next downside way point. CFTC positioning meanwhile 
also showed net leveraged JPY shorts slashed significantly in the latest week 
to near neutral levels. 

 AUD-USD Expect the AUD-USD to remain responsive to 
risk/equity/commodity dynamics in the near term. While a retracement back 
towards 0.6930 cannot be discounted, support at 0.6800 may remain at risk 
multi-session. On the CFTC front, net leveraged AUD shorts jumped in the latest week. 

    GBP-USD The GBP-USD remains under downside pressure we feel 
but investors may sell into rallies given the fairly significant down moves 
since the onset of the year. To this end, markets may fade any upticks 
towards 1.4340-1.4400 on the coming sessions. To add to the pessimism, 
note that CFTC positioning showed net leveraged GBP shorts increasing 
significantly in the latest week. 

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