UBS note their short term/Intraday trading ideas
Some ideas from UBS out today. Are they going to be winners?
EURUSD
- Doesn't see value in shorts at current levels so they say short at 1.1060, add at 1.1085, stick your stop at 1.1110
USDJPY
- They note profit taking ahead of FOMC and BOJ. BOJ is the bigger deal in their eyes and the pair will stay supported into the meeting. Suggest buying dips closer to 120.50 with a stop under 120.00. They note resistance at 121.70 & 122.00
AUDUSD
- The pair has been subdued despite the ECB and PBOC news and cuts. They say sell dem rallies to 0.7280 with a stop through 0.7310 and BTFD below 0.7200 with a stop below 0.7250
My view is that the stop on the EURUSD short is a little wide, depending on how long you are playing the trade for. I certainly don't see it as a great level to sell looking for a longer term trade, unless it develops further as a resistance point over the coming sessions
I like the idea behind the USDJPY trade and it's a similar trade (albeit in reverse) to the one I played last month in buying the BOJ disappointment dip into the FOMC. The risk this time is that there's far less time in between the meetings, so you may not get a decent margin of profit built up to ride any volatility
AUDUSD longs looks to be a fair call with 0.7200 looking like decent support. For the short trade I might look to 0.7295/0.7300 as my entry as we're finding resistance today around the 0.7265/70 level, so a break above there would likely go through 0.7280 easily anyway
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