EUR/USD: found strong demand around 1.2900 just as we were preparing for a break lower. While we still expect the break to materialize, we can’t ignore the support for now. Fade 30-40 pip moves in either direction with stops below 1.2880 or above 1.3000.
GBP/USD: Cable traded down to a low of 1.6185 early in Europe before retracing higher. We prefer to be long but will keep positioning light as we should see some decent volatility. Flows have been limited and very mixed with no clear direction.
USD/JPY: is back to range trading ahead of the FOMC but every small dip is still being bought in good sizes. With resistance holding at 107.35/40 so far, a break of 107.40 should extend the run. As technical levels on the way up are rare for the next few big figures, psychological levels will be crucial. The first good support is at 106.65.
USD/CHF: is consolidating between 0.9300-20 and 0.9370-80 ahead of the FOMC and SNB decisions. It is also hard to EURCHF trading out of the 1.2080-1.2120 range ahead of these events.
UBS