EUR/USD: We still see more downside potential but need to be cautious of positioning adjustments into the year-end. Sell at 1.2350 and add at 1.2375-80 with stops at 1.2405.
USD/JPY: Spot slipped through 120.20 to 119.765, breaking the previous day’s low for the first time in the last 7 trading days. USDJPY is likely to have another dip today, extending the correction. Sell rallies to 120.00-20 with stops above 120.30, targeting the next strong support zone around 119.00-20.
AUD/USD: Dropped to 0.8223 from 0.8300. We expect the pair to remain soft. Sell rallies to 0.8300-20 with a tight stop above 0.8400.
UBS