New York Forex Report: Dollar Strong Ahead Of NFPs

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

Fundamental: Euro weakened over European trading as August PPI data for the EuroZone came in weaker than expected at -0.8% vs -0.6% YoY and -2.6% vs -2.4%  MoM. Headline data for the session is the September Non Farm Payrolls expected 201k vs 173k and Unemployment Rate expected unchanged on the month at 5.1%.

Technical: Bids towards the 1.11 handle keep the pair supported, likely range bound ahead of headline risk event. Breach of 1.1250 resistance targets 1.1350 offers. Breach of range support targets 1.1050 bids.

Interbank Flows: Bids 1.1080/60 stops below. Offers 1.1250 Stops above.
Retail Sentiment: Neutral
Trading Take-away: Sidelines for now

eu2015-10-02 07_35_42-NetDania - NetStation

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

Fundamental: GBP saw some initial strength over the European session as September Markit Construction PMI came in above expectations at 59.9% vs 57.5% expected. Gains were conceded heading into the New York open as USD strengthened ahead of the September jobs report.

Technical: Remains under pressure while capped by 1.52 resistance, next downside objective is a test of 1.50 psychological support.

Interbank Flows: Bids 1.5130/10 stops below. Offers 1.5210/30 stops above
Retail Sentiment: Bullish
Trading Take-away: Sidelines for now

gu2015-10-02 07_36_37-NetDania - NetStation

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

Fundamental: USD firmed over the European session leaving JPY on the back foot as yesterday’s Tankan CPI survey showed weakness in the Large Manufacturers Index (3Q). Japanese jobless rate was also shown to increase to 3.4% over August.

Technical:  Range trade persists ahead of Friday’s NFP release. 119 the bid 121 the offer for now, topside break targets 122.50 while a downside breach targets 118.

Interbank Flows: Bids 119/118.80, 118.50/30 stops below. Offers 120.50/80 stops above
Retail Sentiment: Bullish to neutral
Trading Take-away: Sidelines for now

uj2015-10-02 07_38_05-NetDania - NetStation

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

Fundamental: Remained firmly confined within it’s range over the European session as both the Euro and Japanese Yen weakened ahead of the NFPs

Technical: Interim support at 134 eroded next downside objective is a retest of bids at 132. A close above 135 opens a retest of upper end of the recent range and a retest of offers at 137 next.

Interbank Flows: Bids 133 stops below. Offers 135.10/30 stops above
Retail Sentiment: Bearish
Trading Take-away: Sidelines for now

ey2015-10-02 07_39_19-NetDania - NetStation

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

Fundamental: Having recovered some ground over recent sessions on better Chinese data and accompanying improvement in risk sentiment, the Aussie retreated from yesterday’s highs of 0.7082 . Range-bound in European trading today ahead of the September jobs report.

Technical: Positions are pared into today’s headline risk event, as relief rally stalls ahead of .71 resistance. While offers at .71 cap upside attempts bears targets new year to date lows. A breach of .71 resistance targets a retest of offers towards September highs towards .7270.

Interbank Flows: Bids .6850 stops below. Offers .7100 stops above
Retail Sentiment: Bullish
Trading Take-away: Sidelines for now

au2015-10-02 08_26_24-NetDania - NetStation

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

Fundamental: Better domestic GDP data and stronger oil prices have seen the Canadian Dollar stronger in recent sessions. Today’s US NFP report will be key for direction into the weekly close. Oil prices have softened from yesterday’s highs halting the CAD’s resurgence.

Technical: While 1.32 supports intraday downside reactions expect new trend highs en route to test projected ascending trend line resistance at 138 next. A failure at 1.32 concerns near term bullish bias and suggests a deeper corrective phase targeting downside symmetry objective at 1.31.

Interbank Flows: Bids 1.32 stops below. Offers 1.34 stops above
Retail Sentiment: Bullish
Trading Take-away: Sidelines for now

uc2015-10-02 08_28_19-NetDania - NetStation

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