Tech Targets: EUR/USD, GBP/USD, AUD/USD, NZD/USD, USD/JPY
EUR/USD: Neutral: Stabilization only if above 1.0640.
EUR exceeded the ‘short-term target’ of 1.0530 yesterday with a low of 1.0520. The sharp rebound from the low coupled with oversold conditions suggest that the current pull-back (from the 1.0825/30 high two weeks ago) is trying to form a base. However, only a move back above 1.0640 would indicate that the current weakness has stabilized. Until then, another push lower to 1.0520/30 is not ruled out even though the odds for such a move have diminished considerably
GBP/USD: Neutral: Still in a range, likely within 1.2350/1.2600.
GBP continues to trade in a choppy manner and the current neutral phase is still clearly intact. Indicators are mostly ‘flat’ which suggest further range trading for now, likely between 1.2350 and 1.2600.
AUD/USD: Bullish: Anticipating a move to 0.7775/80.
In the update yesterday, we highlighted that ‘time is running out for AUD bulls’ and the clear break above 0.7700 during NY hours is certainly timely. Now that we have cleared the major 0.7700 hurdle, the focus is at last November peak of 0.7775/80. The next resistance at 0.7850 is a formidable long-term resistance and may not come into the picture so soon. Those who are still long should move the trailing stop-loss higher to 0.7640 from 0.7615.
NZD/USD: Neutral: In a 0.7150/0.7320 range.
The move back above 0.7220 indicates that the pull-back last week’s 0.7375 peak has found a temporary low at 0.7135 two days. NZD has likely moved into a consolidation range and is expected to trade sideways for now, likely between 0.7150 and 0.7320.
USD/JPY: Neutral: Positive undertone intact as long as above 113.20.
USD hit a high of 114.95 yesterday but eased off quickly. Despite the sharp pull-back, the positive undertone is still intact and another leg higher to test the major 115.35/40 resistance cannot be ruled out just yet (even though the odds for such a move have diminished). On the downside, solid support can be expected at 113.20 and only a break of this level would indicate the rebound from last week’s 111.55/60 low has found a temporary top