USD Trading Outlook (23-12-2013)

Currencies

• The euro (EUR) has rebounded against the US dollar (USD) after touching 1.3636 on Friday. The single currency is currently at 1.3681 and may be looking at resistance at 1.3757..

• The US dollar (USD) remains confident against the Japanese yen (JPY) after having reached a five year high at 104.63. The dollar has sincere retraced to 104.034 but may continue its bullish trajectory over the holiday season.

Equities

• US stocks opened the week higher as Christmas nears and Wall Street remains bullish. The US 500 (SPI) has touched 1820.60, an all-time high before correcting to 1819.51.

Commodities

• Brent Crude (BRT) has picked up over the past few days from 109.35 to 111.90 as fears of another supply disruption shake oil markets.

Mover & Shaker with FX Options

• The Australian dollar (AUD) strengthened against the US dollar (USD) over the weekend. The pair has fallen from a high of 0.9754 to 0.8823 since October as the economy follows a natural depreciation following lower demand for its raw materials.

• Options Traders expecting a weaker Aussie may consider constructing Bear Put spreads on the pair.

• The Bear Put spread is constructed by buying an at-the-money Put and selling an out-of-the-money Put option on the AUDUSD.