EUR: 1.0975 and ultimately 1.1030/35 should cap an intraday rally and we maintain a bias for EURUSD to trend lower, but as always playing the range in an effort to improve the average will be an important element to the plan. 1.0910 ahead of 1.0820 will act as support.
JPY: We prefer to express a long bias in the pair but favour lightening around current level in order to allow the flexibility to improve on the average back towards 123.20/40. Intraday support stands at 123.65/75 and then 123.35/40 ahead of the new line in the sand at 122.80/85. Resistance 123.95/124.00 and then 124.25/45.
GBP: EURGBP is our favoured expression with the markets pre disposition for USD length making Cable a trickier proposition – cycle lows of 0.69885 now in sight. Cable levels: support at yesterday’s lows of 1.5578 with 1.5676 topside.
AUD/NZD: We still think selling rallies in NZD makes sense. Tomorrow’s US CPI will likely be the next catalyst for a move in the Antipodeans. Levels: AUDUSD: support at overnight lows of 0.7350 with 0.7300 below, 0.7450 and 0.7500 as resistance. NZDUSD: the April downtrend comes in at 0.6487 right below the low of 0.6498; resistance at old low of 0.6620.
CAD: Tomorrow’s Canadian CPI (at the same time as the US’s) will be vital to see if the market can break 1.30, but for the time being we think it makes sense to take profit towards the figure, with 1.2880 offering near term support.
The post Goldman Sachs FX Spot Desk Strategies appeared first on www.forextell.com.