AUDUSD: In a session fatigued with developments surrounding the euro-zone crisis, the Australian dollar was higher late Friday having traded in choppy ranges amid thin data flow.
Australian dollar volatility is likely to remain high and, despite buying support on dips, there will be a high risk of renewed losses over the next few weeks.
We expect a range for today in AUDUSD rate of 1.0270 to 1.0430 (The pair pulls back from high 1.0390 and low 1.0320. We expect the pair to head further north toward 1.0400.)
Set limit Sell at 1.0430
Stop loss at 1.0490
Target at 1.0380, 1.0320 and 1.0260
EURUSD: Traders were more pessimistic about the beleaguered euro last week, holding a net $13.4 million in wagers that the currency, plagued by the region’s fiscal crisis, will weaken, data from Commodity Futures Trading Commission’s weekly report on the commitments of traders showed Friday.
Speculators held a net 77,720 short contracts on the euro as of Oct. 18. Those positions were part of the reason why speculative bets that the dollar will strengthen went up 4% this week, to $14.2 billion.
We expect a range for today in EURUSD rate of 1.3800 to 1.3900
Set limit Sell at 1.3960
Stop loss at 1.4030
Target at and 1.3900, 1.3860
USDJPY: The dollar was subjected to choppy trading conditions during the week as it attempted to regain ground following sharp losses the previous week, but the performance was never entirely convincing as support was fragile with limited trade-weighted gains.
There will be strong pressure on the Japanese government to alleviate stresses caused by a strong yen. There will also be pressure for the authorities to push the currency weaker. The yen will continue to gain important support from a lack of alternatives, especially with all the major currencies tarnished.
We expect a range for today in USDJPY rate of 76.00 to 76.60 (Last week, our signal service sent out to close the trade at 76.86.)
We now entry LONG USDJPY at the current market price 76.20
Stop loss at 75.30
Target at 76.60, 76.90, 77.20
