EUR/USD: We see no reason to fight the trend. Any move close to 1.3000 is a sell, ultimately targeting the double low from April/July 2013 around 1.2750. Intraday, stay short and add on current move to 1.2925, with a stop at 1.3000.
USD/JPY: After the break of key resistance at 105.50, USDJPY is set to finally extend properly. Greater expectations of BoJ easing should also be supportive given the lagging data recently, and with the GPIF committee meeting coming up in mid-September. We favour playing yen weakness through USDJPY rather than the crosses, and would buy dips to 105.70/80.
USD/CHF: has topped out at 0.9380/90 resistance ahead of the more important September 2013 high of 0.9455. Dips should be limited to 0.9310/20 now; this held well as support yesterday, and we favour going long towards that level.
NZD/USD: is currently trading below the recent support area at 0.8240/60. We expect the pair to continue to trade soft, so stay short with a stop above 0.8350.
UBS