FX strategy on 15/10/2016
Euro broke the strong support at 1.11, just like what i said previously (the movement resembles gold but lag a bit behind. For gold, the strong support is at 1300).
So after Euro broke 1.11, then we are looking to short euro at any pull back to the resistance area, which is aroud 1.1065 and the target is 1.081 area.
USDJPY broke the downward line confidently, so we believe that the trend is reversed, provide that the estimated probability for Dec 16 rate hike is climbing higher. However, if USDJPY is not able to break 104 area in next coming few weeks, then we might change the view on USDJPY.
Two plans for USDJPY:
If USDJPY break 104.60/70 area, then we can buy at the pull back around 104 area.
If USDJPY pull back to 103.20 area, we are looking to buy USD at this area, if it didn’t break 103 line confidently.
After Gold breaks the strong support at 1300 area. Then the main strategy is to short gold at the resistance area. For now, the resistance area is at 1262 area and support area is at 1240 area.
1240 looks to be a critical support area. If gold breaks this line, then we are looking to short gold till 1200 area.