EUR/USD: was rather wild for a change in Asia but has since reversed to trade only 25 pips lower than Friday’s close into the European open. We have closed our shorts and will only get back in on a move back up towards the session high/Friday’s close.
USD/CHF: underwent the usual Monday squeeze in very thin liquidity in Asia and tested 0.9690-95, the early October highs, and resistance. While the dollar uptrend seems to be a given, we will much rather buy on dips towards 0.9600-20.
USD/JPY: the pair topped out just shy ahead of 113 with pressure on the crosses, mainly EURJPY and AUDJPY. As market conviction in continued yen weakening is very high, every little intraday dip has been bought. Buy USDJPY around 112.30, Friday’s close and the entry level of the quarterly Ichimoku cloud.
AUD/USD: Watch the RBA decision tomorrow and SOMP on Friday. AUDUSD remains a sell on rallies for a re-test of 0.8640, the October low.
UBS