UOB trade ideas for forex traders on 5th October

United Overseas Bank (UOB) shared its trade ideas for forex traders after gold fell yesterday and ahead of key news from Canada, UK and USA.  Are traders Bullish on USD?

5th October, AtoZForex – Trade ideas for forex traders shared by UOB on the AUDUSD, EURUSD, GBPUSD, NZDUSD and USDJPY pairs.

AUDUSD: Shift to bullish side daily closes above 0.7710 – Neutral bias

Outlook from yesterday unchanged, on Friday we saw AUD dip to 0.7588 and bounce back. A shift in bias to the bullish side will only occur is we see a daily closing about the 0.7710. UOB added..

“…this would indicate a higher sustained move to the up side”.

EURUSD:  Range bound in 1.1120-1.1290 – Neutral bias

A look at most indicators, shows they are flat and no change in the neutral bias for the EUR despite the feverish price action yesterday. Further trading within this range with no clear direction. UOB’s  view…..

“… continued directionless trading likely in a range of 1.1120-1.1290 and the 207 pips (1.1119-1.1326) Sept trading is the narrowest monthly range on record .”

Also see: Daily Free Forex Signals

GBPUSD:  Support at 1.2620– Bearish bias

The bias for GBP remains bearish, as the post Brexit low of 1.2795/00 was easily breached.  UOB added…

“…  further downside movement at a slower pace to the 1.2620 level is likely.”

NZDUSD: Bearish action limited to 0.7110 – Bias shift from Neutral to Bearish

The NZD breached the trading range of  0.7200-0.7375 with a weak daily close.  Further NZD weakness expected in the next couple of days, whilst the decline seems to accelerated expect downside risk limited to 0.7110. UOB’s view..

“… if present momentum is to be maintained price should not rebound above 0.7260.”

USDJPY: Initial target of 103.35 then 104.30 – Bias shift from Neutral to Bullish

USD  daily price closed above 102.30 resulting in a shift in bias to the bullish side. The strong move to the upside came unexpectedly to a high of 102.96. UOB added

“.. continued USD is expected with next target at 103.35 then to the Sept high of 104.30.”

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