EUR/USD is still trading at the low end of its recent range, and a test of the critical 1.3500 support proved to be short lived. We expect pain below 1.3477 and sellers to be lined up towards 1.3575-80. We remain sellers of rallies.
USD/CAD is likely to lose momentum after Canada inflation came above expectations on Friday. Play the 1.0620-1.08 range.
AUD/USD had a very slow start to the week, trading in a 15-pip range. We still prefer to be short given the current geopolitical tensions. Sell rallies to 0.9420-50 with stops above 0.9510, targeting support at 0.9325
USD/JPY & EUR/JPY is a sell towards 101.50 with a stop above 101.80/90. In view of the geopolitical developments last week, equities look odd close to all-time highs. There might be room for correction. We prefer to be short yen crosses. EURJPY seems a bit vulnerable – sell towards 137.50 with a stop above 138.00. Key support lies at 136.23. USDJPY has first support at 101.05/10 ahead of 100.75/80.
UBS