Trade Ideas For EUR/USD, USD/CHF, EUR/CHF AUD/USD - UBS
The following are UBS' latest short-term (mostly intraday) trading strategies for EUR/USD, USD/CHF, EUR/CHF and AUD/USD.
EUR/USD: The selloff on Thursday and Friday should generate more selling interest, but we don't see much value in being short below 1.1000. Play the range today; sellers will come in above 1.1100 and buyers will be lined up below 1.1000. We saw mixed flows yesterday with a slight selling bias.
USD/CHF, EUR/CHF: broke the resistance around 0.9800 yesterday and attracted some good buying interest, which pushed the cross back into the middle of its range. While there is likely more upside potential for USDCHF after this break, we are not getting too bullish on the cross around 1.09 as we doubt that it can go much higher in this environment of general euro weakness. Buy USDCHF dips to 0.9780/0.9800 and sell EURCHF rallies towards 1.09, as we think EURUSD will head lower.
AUD/USD: We expect the current range will persist until tomorrow's FOMC meeting. Stick to fading rallies towards 0.7280, with a stop above 0.7310.
