EUR/USD: We remain bearish overall but with yesterday’s price action in mind, expect a slow session ahead of the FOMC. Stay flexible and fade a 40-50 pip move in either direction with a close stop at 1.2670 or 1.2810.
USD/JPY: We hope the FOMC tonight provides some guidance. The pair should hold the 107.60/70 – 108.30/40 range; play that favouring longs.
GBP/USD: The pair had been capped at 1.6180-85 this month already and before moving to 1.6230, it topped there as well. The risk reward to establish a short here with a close stop above is worth a try as last time cable retraced to 1.5995 after getting capped and even to the year-low.
AUD/USD: There is risk of further position squaring ahead of the FOMC meeting, especially if AUDUSD breaks resistance at 0.8900. This is a chance to establish fresh shorts; fade into 0.8900-50 with stops above 0.9025.
UBS