EUR/USD yesterday reversed the sell-off we saw in Europe on Monday, leaving us in no man’s land ahead of the FOMC minutes. The pair should remain rangebound but we still see downside risk. Go short around 1.2540, yesterday’s high, and add at 1.2580 with stops at 1.2625, targeting 1.2450.
USD/JPY: Wait for the next dip to get back on the train. USDJPY has small intraday support at 116.80 ahead of the bigger 116.30/40 and 115.50/60.
AUD/USD: AUDUSD breached the short-term uptrend line at 0.8680-90 having lost the upside momentum. Sell rallies from here with stops above 0.8810, for 0.8550.
UBS