Key US data for last week i.e. Initial Jobless Claims and Nonfarm Payrolls, were better than expected, giving some strength to the US dollar. The world remains uncertain on the Brexit and its impact, with most investors in a risk-off.
GOLD hits high above 1375 last week, the last time it hits this level was March 2014. In times of uncertainty, investors have again turned to gold for “safe haven”.
No key economic data from the US side today, except maybe the Labor Market Conditions Index which we expect a rather muted reaction to.
We continue to be bullish on the US dollar strength.
EURUSD – We continue to look for opportunities to sell on rallies. Short below 1.11, above which risk of breakouts.
We continue to stay out of EURNZD as the pair trades around the 1.5160 level.
GBPUSD – The pound sterling may continue to weaken, so we observe, while cautiously buying on dips to avoid getting trapped.
EURGBP – We continue to short on rallies below 0.86, above which we will re-evaluate our risk management.
USDCAD is currently in a ranging market, presenting both long-short opportunities, with proper money management.
USDJPY struggles to stay above 101. We recommend buying on dips with caution. A break below 100 is possible, but we prefer to stay on the long side for this pair in the long term.
Feel free to share your trade ideas in the comments below too 🙂