UBS-logoTrade Ideas are short term (mostly intraday) fx strategies realesed daily by UBS analytics. In todays release we can get to know with their ideas for such currency pairs like EUR/USD, GBP/USD and NZD/USD.


 

EUR/USD

Yesterday’s Fed was more hawkish than we, and the rest of the market expected. All we know now is that December rate hike is still very much alive, which of course caused massive attack of USD bulls on EUR/USD. Only very poor data before the year end can prevent Fed from the hike – UBS notes. We are pretty bearish right now, and would recommend building a short position, adding on any move towards 1.0980, with a stop above 1.1020. Test of 1,0850 level is still very probable, so that is only reasonable place for take profit. EURUSDM30

Check how narrow spreads can be

GBP/USD

Although there was a noticable reaction after yesterday’s FOMC, today GBP/USD is trading really steady. Support at 1.5249, 1.5201 and 1.5141; resistance at 1.5270 and 1.5302

Red box provides opportunity to trade from the bottom to the top of it.
Red box provides opportunity to trade from the bottom to the top of it.

NZD/USD

Not only FOMC was a driver here. NZD/USD plunged after the message from Americans, but right after it bounced up to 0.6710 after the RBNZ left the OCR unchanged at 2.75%. Later, during Asian session it came back to 0,6650 after RBNZ remarks that poor exchange rate may dampen medium-term inflation. UBS is medium bearish at NZD/USD, preffering shorts on AUD/USD. NZDUSDM30

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