New York Forex Report: US Dollar Stabilises ahead of CPI

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

Fundamental: Comments from ECB’s Nowotny that further measures are needed to boost inflation have seen EURUSD retrace from yesterday’s highs. Traders look ahead to US CPI data due at 1330GMT1 expected to show a deflationary dip in September with a print of -0.1%.

Technical: price is pressuring 1.15 offers, while 1.1440/60 supports intraday downside reaction bulls now targets 1.1740 as the next upside objective.

Interbank Flows: Bids 1.1430/50 stops below. Offers 1.1520 Stops above.
Retail Sentiment: Bearish
Trading Take-away: Stay long for 1.1740

eu2015-10-15 07_41_43-NetDania - NetStation

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

Fundamental:  GBP managed to retain yesterday’s higher ground over European trading still benefiting from supportive flows on the back of yesterday’s employment data and weak US Retail sales data.

Technical: The sustained move over 1.53 targets retested of 1.54 en route to 1.55 as suggested. While 1.5380 supports downside reactions expect a grind higher to test 1.56 symmetry objective

Interbank Flows: Bids 1.54 stops below. Offers 1.5520 stops above
Retail Sentiment: Bearish
Trading Take-away: Buy pullback against 1.5380 targeting 1.56

gu2015-10-15 07_42_41-NetDania - NetStation

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

Fundamental: Flows still heavy over European trading with USDJPY still outside of its recent triangle range, having broken below it yesterday. JPy is still firm despite equities and commodities seen stronger into the New York open.

Technical: Testing the lower end of the extend range while bids at 118.50 hold expect rotation back into range, a failure at 116.50 emboldens bearish spirits and targets 116 next.

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

uj2015-10-15 07_43_19-NetDania - NetStation

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

Fundamental: EURJPY found lower ground over European trading, weakening amidst a softer EUR and stronger JPY.

Technical:  Offers into 137 capped initial upside test with price rotating back down into bids at 135. A breach here opens up a test of of 133.50 support next.

Interbank Flows: Bids 133.50 stops below. Offers 137 stops above
Retail Sentiment: Bearish
Trading Take-away: Sidelines for now

ey2015-10-15 07_43_52-NetDania - NetStation

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

Fundamental:The Aussie stalled around yesterday’s session highs over European trading this morning as USD stabilised after yesterday’s decline. Commodities are firmer today supporting AUD which strengthened yesterday on the back of weak US retail sales data.

Technical: The snap back breach of .7300 targets a retest of .7400 offers. Another breach of .7300 against overnight highs targets .7160 equality corrective objective.

Interbank Flows: Bids .7200 stops below. Offers .7400 stops above
Retail Sentiment: Bearish
Trading Take-away: Buy pullbacks to .7160 targeting a retest and break of .7400

au2015-10-15 08_10_04-NetDania - NetStation

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

Fundamental: The Canadian Dollar concede some of yesterday’s gains over early European trading today as oil weakens for the fifth consecutive day. Canadian existing home sales data is due at 1330GMT1 though expect this to be upstaged by the headline US CPI data.

Technical: Near term bearish tend remains intact as intraday resistance at 1.3060 contains intraday upside reactions bears target 1.2850 bids as the next downside objective. A breach of 1.3080 opens test of 1.3130/50 offers next.

Interbank Flows: Bids 1.2850 stops below. Offers 1.3060 stops above
Retail Sentiment: Bullish
Trading Take-away: Sidelines for now

uc2015-10-15 08_11_28-NetDania - NetStation

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