Technically, chase USD/JPY, USD/CAD higher, caution on EUR/GBP – Deutsche Bank
By FXStreet FXStreet (Delhi) – Oliver Harvey, Macro strategist at Deutsche Bank, lists down the few recommendations based on the technical price structure of the pairs.
Key Quotes
“USD/JPY is our top scoring currency as it’s highly trending (to the upside) with VHF at 90th percentile and breaking new ground (100th percentile). It has smooth price action and is not stretched as per risk reversal measure, but it is quite stretched from RSI measure, although not at extremes.”
“USD/CAD is also highly trending (to the upside) with VHF at 80th percentile and given a lower level of stretchiness as per risk reversal measure may be a better idea.”
“Elsewhere, EUR/NOK is moderately trending upwards and is not stretched as per both RSI and risk reversal metrics.”
“On the other hand, EUR/GBP appears extremely stretched from both RSI and risk reversal metrics and is highly volatile as per realized volatility, so be cautious in chasing the trend.”
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Source:: FX Street
