New York Forex Report: USD Recovery Remains Intact

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

Fundamental: The Euro weakened over the European morning, extending loses from yesterday as the US Dollar continued to make headway higher following improvements in core CPI releases yesterday. EuroZone September CPI was confirmed at -0.1%. US Industrial production (1315GMT1) and University of Michigan Confidence survey (1400GMT1) are key data releases for the American session with IP expected -0.3% from -0.4% previous and the Confidence survey 89 vs 87.2 previous.

Technical: 1.1410/30 now a pivotal bull/bear battleground, while this area contains upside reactions expect further weakness and retest of 1.13 bids A breach of 1.1450 refocuses bull on the 1.1740 range highs

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

eu2015-10-16 07_41_25-NetDania - NetStation

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

Fundamental:  Sterling was weaker over the European morning as the USD recovery continued. Lack of domestic data saw quiet trading with some USD profit taking into the New York open.

Technical:  While 1.5380 supports downside reactions expect a grind higher to test 1.56 symmetry objective.

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

gu2015-10-16 07_42_26-NetDania - NetStation

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

Fundamental: A quiet range-bound European morning for USDJPY with flows mixed as USD strengthened initially before profit taking ahead of the New York open.

Technical: Bids at 118.50 support again and the expected rotation back into range has developed 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.

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

uj2015-10-16 07_43_14-NetDania - NetStation

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

Fundamental: Euro weakness saw EURJPY sharply lower over the European morning

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

ey2015-10-16 07_43_47-NetDania - NetStation

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

Fundamental: Australian Dollar was lower over the European session amidst commodity weakness and USD strength.

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

au2015-10-16 08_12_13-NetDania - NetStation

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

Fundamental: Canadian Dollar, in line with the Aussie, was softer over the European session as commodities softened and USD gained.

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: Bullish
Trading Take-away: Sidelines for now

uc2015-10-16 08_16_57-NetDania - NetStation

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