Matt Simpson, CFTe, MSTA
CityIndex
NZD: GDP q/q beat expectations by 0.1% to sit at 0.7%. This saw minor profit taking from NZDUSD shorts.
GBP: Traders are beginning to take positions in the lead-up to Scottish Referendum. This makes GBP crosses ones to consider before these events begin (GBPJPY in particular).
JPY: The weakest G7 currency and providing the cleaner trends during Asia. The question is whether this trend will continue during Europe and US session.
UP NEXT:
EUR: The ECB reveal how much money they are going to create as part of the LTRO program so volatility can be expected from the Euro crosses. If we are lucky this will be combined with directional moves too (as volatility and direction aren't always correlated)
GBP: Retail sales can be expected to take a back seat as all focus is on the Scottish Referendum. Please view the visual guide and webinar for a detailed trade plan for this historic session.
CHF: There is talk of SNB announcing negative interest rates. Whilst this should cause money to flow out of CHF, we could find it flowing back in again in the event of a Scottish YES.
USD: With FED Chair Lady Yellen speaking again tonight it will be interest to see if she elaborates further on the FED Dot Plot, lowered growth forecasts and forward guidance following yesterday's volatile session.
TECHNICAL ANALYSIS:
EURJPY: Bullish trend (For now)
Plenty of volatility on Euro crosses tonight so no directional bias is provided. However there are clear levels of S/R to consider to use for targets/stop placement/reversal patterns.
AUDUSD: Seeking to sell into any weakness below resistance levels
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