EurUsd Broad unwind of massive short EURUSD continues. The sharp reversal off 1.3146 (4th Oct low) continues to find buyers making short work of near term resistance. Initial resistance stands at 1.3834 (12th Oct high), 1.3937 (15th Sept high) then not much till 1.4278 (6th Sept reaction high). Support is located at 1.3566 (11th Oct low), 1.3525 (7th Oct high) then 1.3346 (10th Oct low).
GbpUsd An article regarding potential UK downgrades has taken a bite out of cable momentum, stalling ahead of 1.5800. However, we suspect the bullish momentum will continue despite today's intraday pullback. Yesterday's move broke key resistance at 1.5716 (29th Sept high) which has now opened the way towards 1.5907 (12th Sept high), then 1.6000 (psychological resistance). Initial support is located at 1.5668 (10th Oct high), 1.5333 (23rd Sept low), then 1.5297 (7th Sept 10 low) and after that, lots of space.
UsdJpy Yesterday aggressive move actually had us excited (100pips), however seem the USDJPY has returned to its old behavior today. Rallies fail to retain momentum. Even the spike in US yield dif has not given the pair much of a boost as historical correlation remains low. Given our positive view on safe-haven trades (and lack of freedom from CHF) we continue to expect to eventually revert to 76.12 to 77.49 range. Support will come into play at 76.12 (21st Sept low), then 75.95 (all time low). On the topside initial resistance is located at 77.05 (daily cloud base).
UsdChf Safety in USD is trumping all other perceived safe-haven trades and with the SNB standing unyielding (although untested) flows normally sent to CHF are now heading stateside. We are unconvinced that the 3-day corrective sell-off should shift our bullish view. Support stands at 0.8919 (12th Oct low & 29th Sept high) then 0.8647 (15th Sept low). On the topside 0.9086 (30th Sept high), 0.9147 (4th Oct low) then 0.9316 (6th Oct high) should provide temporary resistance.