UBS Intraday: Long NZDUSD dips to 0.6450

02 February,, Amsterdam — In a couple of hours the New Zealand employment change will be released, in the meantime have a look at the Swiss global intraday setups. A given tool that traders need to acknowledge. Today’s focus is on Kiwi, as the bank recommends to long NZDUSD dips towards 0.6450. The other major currency pairs included are EURUSD, EURJPY, GBPUSD, AUDUSD and USDCAD.


Since yesterday, EURUSD experiences a number of minor pressure to the topside, post ECB Draghi’s testify about the 2015 ECB Annual Report before the European Parliament. UBS prefers to stay patient and suggest to:

“Wait for a break of the range between 1.0700-1.100 range.”


As the BOJ negative interest rate policy will commence full effect on February 16, the Swiss bank notes it’s preference to Long EURJPY on dips to 131.30/40, while having a stop below 130.80. Moreover, the UBS indicates there a significant resistance remains at 132.25.


Compared to yesterday’s UBS analysis, there’s more squeeze in GBPUSD. Hence, UBS recommends to Long on GBPUSD dips towards 1.4310/20, while having a stop through the 1.4250 levels, more importantly target a move to 1.4500.


Moving next to Aussie, the RBA left today the OCR at 2% with a more dovish tone, which was widely expected by the market. UBS looks to Long AUDUSD on dips towards 0.7000, while having a stop below 0.6950, aiming to move towards 0.7200 target.


As Kiwi got capped at the 0.6550 resistance, the pair is trading bid. The Swiss bank foresees Kiwi to test the topside another time, hence advises to: “ Long NZDUSD dips towards 0.6450, with a stop below 0.6340, targeting a break or test of the resistance at 0.6610.”


Despite the low oil prices, Loonie traded slightly higher than yesterday. Did it decoupled from oil? Nevertheless, UBS prefers to short USDCAD on rallies, and remains cautious of a potential move higher, due to the oil selloff: “Look to establishing shorts closer to 1.4150 than at current levels.”

Let us know down in the comments section, what you think of 02/02 UBS intraday analysis!

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