EUR/USD: was muted overnight and could have a slow day with the US out. Stay flexible and fade 40-50 pip moves in either direction with stops at 1.2350 and 1.2510. Flows are mixed with no clear direction.
USD/JPY: made an impressive comeback in Asia as positive US labour market conditions spurred the dollar and risk yesterday. Buy the pair on dips below 115.
AUD/USD: drifted back lower driven by broad-based US dollar buying. The pair is currently torn between buying in AUD crosses and US dollar strength…Stay short the pair with a tight stop above yesterday’s high of 0.8690, for a test of last week’s low of 0.8535.
UBS