New York Forex Report: Commodities Climb Over EU Morning

EURUSD
Outlook: Short Term (1-3 Days): Bullish – Medium Term (1-3 Weeks): Bearish

Fundamental: EURUSD traded firmer over the European session driven partly by cross flows as EURGBP demand kicked in on Sterling weakness. After some initial weakness into the London open, European equities have begun to recover ground as we head into the New York open which could temper the Euro’s advance.

Technical: price is pressuring the upper end of the contracting range, testing offers above 1.13. While 1.1250 supports intraday downside reactions expect a sustained breach of 1.1330 which targets 1.1460 as the next upside objective

Interbank Flows: Bids 1.12 stops below. Offers 1.1350 Stops above.
Retail Sentiment: Neutral to bearish
Trading Take-away: Sidelines for now

eu2015-10-09 07_40_36-NetDania - NetStation

GBPUSD
Outlook: Short Term (1-3 Days): Bullish – Medium Term (1-3 Weeks): Bearish

Fundamental: Comments yesterday by  BoE’s Carney that the timing of a move by BoE is not dependable on when Fed tightens, has seen continued GBP demand across European trading bolstered by trade balance data which showed a contraction of the deficit. Modest upside reaction was tempered by the release of dismal construction output data

Technical: Testing 1.54 offers. While intraday downside reactions are support towards .153 near term upside remains in tact, with 1.55 targeted as the next upside objective.

Interbank Flows: Bids 1.5260/80 stops below. Offers 1.54 stops above
Retail Sentiment: Bearish to neutral
Trading Take-away: Stay long for 1.55

gu2015-10-09 07_41_13-NetDania - NetStation

USDJPY
Outlook: Short Term (1-3 Days): Bullish – Medium Term (1-3 Weeks): Bearish

Fundamental: USDJPY has maintained firmer trading over the European session. Yesterday’s FOMC minutes release failed to add any bullish encouragement for hawk’s which has seen risk sentiment rebound today amidst the growing likelihood of a further delayed US lift off, seeing JPY safe haven demand reduced.

Technical: Continues to coil in contracting range, play range 121.50 the offer and 118.50 the bid until broken.

Interbank Flows: Bids 118.50/30 stops below. Offers 121.50 stops above
Retail Sentiment: Neutral to bullish
Trading Take-away: Sidelines for now

uj2015-10-09 07_42_12-NetDania - NetStation

EURJPY
Outlook: Short Term (1-3 Days): Bearish – Medium Term (1-3 Weeks): Bearish

Fundamental:Broad JPY weakness over the European session has seen EURJPY trading into new weekly highs.

Technical:  A breach of 136 sees stops run on approach to 136.50. Whilst 135.50 supports expect price to pressure offers into the 137 handle next.

Interbank Flows: Bids 134.50 stops below. Offers 136 stops above
Retail Sentiment: Neutral to bullish
Trading Take-away: Sidelines for now

ey2015-10-09 07_42_44-NetDania - NetStation

AUDUSD
Outlook: Short Term (1-3 Days): Bullish – Medium Term (1-3 Weeks): Bearish

Fundamental:  A strong rebound in commodity prices following yesterday’s Dovish FOMC minutes has seen the Aussie trading firmer over the European session as risk rallies.

Technical: Offers into .73 have been worked through with spot challenging stops into .7350. While .73 supports intraday downside reactions, Bulls now target .7400 as the next upside objective

Interbank Flows: Bids .7200 stops below. Offers .7310 stops above
Retail Sentiment: Bearish
Trading Take-away: Buy pull backs against .7200 targeting .7400

au2015-10-09 07_51_11-NetDania - NetStation

USDCAD
Outlook: Short Term (1-3 Days): Bearish – Medium Term (1-3 Weeks): Bullish

Fundamental: The Canadian Dollar has found form again over European trading today amidst a broad recovery in commodities with Oil surging higher  following the Dovish FOMC minutes yesterday

Technical: Near term bearish tend remains intact as intraday resistance at 1.3020/40 contains intraday upside reactions bears target 1.2850 bids as the next downside objective

Interbank Flows: Bids 1.29 stops below. Offers 1.3030 stops above
Retail Sentiment: Bullish
Trading Take-away: Sidelines for now

uc2015-10-09 07_56_05-NetDania - NetStation

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