New York Forex Report: US Dollar Stronger On Monday

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

Fundamental: EURUSD was lower over the European morning  as the US Dollar traded higher following better than expected Chinese GDP data overnight. Investor expectations continue to mount over ECB QE ahead of the upcoming October meeting this Thursday. US NAHB Housing Market Index is the only noteworthy data for the US session expected unchanged at 62.

Technical:Currently testing bid at into 1.13 as the sell-off from 1.1460 resistance gathers pace.  Mid-range support at 1.1270 provides short term objective ahead of rotation into lower end of range at 1.11.

Interbank Flows: Bids 1.13 stops below. Offers 1.1520 Stops above.
Retail Sentiment: Bearish to neutral
Trading Take-away: Sidelines for now

eu2015-10-19 07_26_26-NetDania - NetStation

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

Fundamental:  GBP traded higher over the European session still deriving support from comments by  Bank of England policy maker Kristin Forbes who said UK economic prospects can survive the current difficulties in emerging markets, and the next move in UK interest rate will be up “sooner rather than later”. Bullish momentum also bolstered by the Chinese GDP print.

Technical:  While 1.5380 supports downside reactions expect a grind higher to test 1.56 symmetry objective. A breach of 1.5360 targets a retest of pivotal 1,53 support.

Interbank Flows: Bids 1.54 stops below. Offers 1.5550 stops above
Retail Sentiment: Bearish to neutral
Trading Take-away: Buy pullback against 1.5380 targeting 1.56

gu2015-10-19 07_27_07-NetDania - NetStation

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

Fundamental: JPY was weaker over the European morning as risk sentiment improved in the wake of Chinese data with USD rebounding higher also.

Technical: While 119.50 caps upside expect further bearish price action and further exploration of stops sub 118.50, a failure at 118 emboldens bearish spirits and targets 116 next. A close above 119.50 opens a retest of 120.50 next.

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

uj2015-10-19 07_27_46-NetDania - NetStation

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

Fundamental: EURJPY weakened over the European morning largely due to EUR weakness as investors position heading into Thursday’s ECB meeting.

Technical:  While 136 caps upside reactions expect a retest of yesterdays low at 134.80 a failure here sets bearish tone targeting 133.40 next. A break back above 136.00 eases bearish pressure and sets a retest of 137.

Interbank Flows: Bids 134.80/60 stops below. Offers 137 stops above
Retail Sentiment: Bearish
Trading Take-away: Sidelines for now

ey2015-10-19 07_28_16-NetDania - NetStation

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

Fundamental: AUDUSD remained supported over early European trading. Reaction to the Chinese GDP print keeps the Aussie lightly bid. Although GDP came in better than expected at 6.9%, it is down from the previous 7% and marks a 6 year low so reaction has been muted.

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: Sidelines for now

au2015-10-19 08_44_48-NetDania - NetStation

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

Fundamental: The Canadian election today is not expected to have a significant impact on the Canadian Dollar, which has the far more important BOC rate decision looming over it this Wednesday. Oil is weaker over the European morning keeping Loonie supported.

Technical: Near term bearish tend remains intact as intraday resistance at 1.2950 contains intraday upside reactions bears target a retest of bids below 1.2850. A breach of 1.2950 opens test of 1.3060 offers next.

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

uc2015-10-19 08_45_26-NetDania - NetStation

Posted in Forex Analysis, New York Forex Report, tagged with on