AUDUSD: The Australian dollar rallied Friday as Greece’s prime minister dropped plans for a referendum on a bailout plan for his country.
Further helping sentiment about risk-sensitive assets, including the Australian dollar, the European Central Bank defied expectations it would stand pat, cutting its main target rate 25 basis points to 1.25%.
Even though the developments were a boost for the Australian currency, the Australian dollar was unlikely to go much higher ahead of key data on employment in the U.S. overnight and as the group of 20 leading industrialized nations meet in France
We expect a range for today in AUDUSD rate of 1.0350 TO 1.0440 (We expect the pair to head further north toward 1.0500 region)
Long position at 1.0350
Stop loss at 1.0280
Target at 1.0400, 1.0440, 1.0500
EURUSD: In the euro, traders held a net $10.3 billion in wagers that the common currency will fall. That was down 23% from the prior week, or 60,060 contracts. The euro has seesawed as the market faces uncertainty about the currency bloc’s fiscal crisis.
The dollar benefited from the drama affecting the euro zone. Traders increased their bets that the dollar will strengthen to a net $9 billion, up 10% from the previous week, the CFTC data showed.
We expect a range for today in EURUSD rate of 1.3780 to 1.3870 (the pair possible head toward 1.3860 and 1.3950
Long EURUSD at 1.3780
Stop loss at 1.3720
Target at 1.3820, 1.3870, 1.3920
USDJPY: Speculators’ bets that the yen will rise were the smallest since July on Nov. 1, data from the Commodity Futures Trading Commission showed Friday.
The market’s net $4.1 billion position, down 54% from the previous week, indicates that the Japanese government’s program of selling yen to weaken the currency, which has hit historic highs against the dollar recently, is showing some small degree of success. Speculators held a net 25,904 contracts, according to the weekly data on the commitments of traders.
But traders may soon go back to betting on a strong yen. Because the Bank of Japan tends just to do one round of currency intervention, in this case selling yen, the market likely expects no further action from the Tokyo authorities, Osborne said. “Unless the BOJ comes back early next week, we may well see investors pile back in and build up those positions again,” he said.
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
