Today’s Trades 10.18.2017 – EURUSD, AUDJPY, EURGBP

*Good morning/afternoon everyone!*

The U.S. dollar is trading higher against all of the major currencies this morning with USD/JPY breaking well above the 20-day SMA that has capped gains for the past 3 days. With no news on the docket, this move is driven entirely by the rise in U.S. yields. With no major US data on the calendar and plenty of risks, it is not clear if these gains can be sustained. However the breakout is strong and should not be faded as the pair seem destined for 113. European yields are also up across the board but rallies in EUR and GBP have been hampered by US dollar strength but this makes the Yen crosses particularly attractive. There’s a big divergence between the performance of GBP and the move in UK yields. 10 year Gilts are up more than 10 year Treasuries and yet GBP/USD hit a 1 week low -- this suggests that we COULD see a recovery. The commodity currencies are the weakest but the loonie is holding strong (its the only currency that is outperforming the greenback). Its resilient could be fleeting as we head into the NY session.

*The MAIN THEMES I see today are*

+USD
-EUR
-CAD
-JPY

*Trading Biases*

+USD
-EUR, -JPY , -NZD -CAD
neutral GBP, AUD, CHF

*Today’s Ideas*

1. Sell EURGBP at .8914, Stop at .8944, Target .8894
2. Buy AUDJPY at market now 88.27, Stop at 87.97, Target 88.47
3. Sell EURUSD at 1.1752, Stop at 1.1782, Target 1.1732

Cancel ALL pending orders by 3:30PM NY / 19:30 GMT / 5:30AM AEST
Close ALL open day trades by 4PM NY / 20 GMT / 6AM AEST

Swing

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