AUDUSD: The Australian dollar slid broadly Wednesday as the prime minister of Greece’s shock decision to hold a referendum on last week’s bailout sank equities and the risk-sensitive local currency.
The decision was a boon for bond prices in Australia, with the country’s bonds surging on both ends of the curve. Just a day after the Reserve Bank of Australia cut its benchmark interest rate 25 basis points to 4.50%, fixed income traders were pricing in a nearly 100% chance the bank would cut again in December as global economic and debt worries remain high.
Australian houses and apartments approved for construction fell a seasonally adjusted 13.6% in September. This after earlier this week, demand for new homes fell to a decade low during September while house prices across the country continued to drop, posting a 1.2% decline in the third quarter.
We expect a range for today in AUDUSD rate of 1.0265 to 1.0390 (The Aussie dollar is lack of strength for recovery. It currently forming an Elliot Wave pattern. Yesterday, the pair reach high 1.04 where we bought last 1.0335. If you continue to hold your long position, stop loss at 1.0315)
Short position expect at 1.0340-60
Stop loss at 1.0415
Target at 1.0300, 102.70, 1.0240
EURUSD: The euro drifted higher against the dollar in European hours Wednesday, retracing some of the week’s sharp losses ahead of a keenly awaited U.S. Federal Reserve policy statement as the euro-zone debt crisis continued to grab the attention of jittery currency traders.
Unconfirmed talk that China would commit funds to the euro-zone rescue kitty, the European Financial Stability Facility, briefly propelled the single currency above $1.38 against the dollar
That allowed traders to shrug off poor economic data for October which showed that manufacturing activity in the euro zone contracted for a third consecutive month and that German unemployment inched higher.
We expect a range for today in EURUSD rate of 1.3650 to 1.3815 (We have two minor support at 1.3700 and 1.3650, we expect the pair to head up from here. Yesterday, we suggest to go long at 1.3650)
Entry for EURUSD at 1.3650
Stop loss at 1.3600
Target at 1.3710, 1.3770, 1.3820
USDJPY: The dollar slipped versus most major rivals on Wednesday as investors awaited the outcome of the Federal Reserve’s two-day policy meeting, while keeping an eye on developments in Greece after an unexpected call for a bailout referendum crushed risk appetite the previous day.
The dollar index (DXY), which measures the performance of the greenback against a basket of six currencies, traded at 77.030, compared to 77.298 in late North American trading on Tuesday.
The central bank’s Federal Open Market Committee will conclude its two-day meeting Wednesday, announcing any policy decisions at 12:30 p.m. Eastern. Fed Chairman Ben Bernanke will host a news conference at 2:15 p.m. Eastern.
We expect a range for today in USDJPY rate of 77.90 to 78.80 (We expect the pair continue side way. The best way is BUY STOP above 78.40 and SELL STOP below 77.80)
BUY STOP above 78.40 and SELL STOP below 77.80
Stop loss 30 pips
Target 60 to 90 pips
