On March 8, 2017, Posted by , In Uncategorized, By ,,,, , With No Comments

EUR/USD: Neutral: Strong rebound to extend to 1.0680. 

While we still hold the view that the strong rebound from last Friday 1.0499 low has room to extend higher towards 1.0680, the muted trading over the last couple of days has dented the immediate upward pressure. Unless EUR can move and stay above 1.0610 by end of today, it is more likely that this pair has moved into a consolidation phase. Key support is still at 1.0520.


GBP/USD: Bearish: Room for extension to 1.2150 followed by 1.2100. 

The 1.2200 target that was first indicated last Thursday was finally reached yesterday with overnight low of 1.2170. While most indicators still point to a lower GBP, downward momentum is not as impulsive as preferred and it is likely that we would see slow downward grind from here. The next level to aim for is at 1.2150 followed by 1.2100.


AUD/USD: Neutral: Expect further weakness towards 0.7510. 

AUD popped to a high of 0.7633 yesterday, holding below the key short-term resistance of 0.7645. The sharp decline from late last week is showing early signs of stabilizing but at this stage, another leg lower towards the major 0.7510 support is not ruled out just yet (even though the odds for such a move have diminished). At this stage, we do not expect a sustained move below 0.7510


NZD/USD: Neutral: Severely overextended but no signs of stabilization just yet. 

NZD continues to decline at a surprisingly rapid pace to hit an overnight low of 0.6952 (holding above the 0.6950 support). The decline is severely over-extended but with no signs of stabilization just yet, further weakness cannot be ruled out. Only a move back above 0.7030 would indicate that a short-term low is in place. The next support below 0.6950 is at 0.6890 with minor support at 0.6930.


USD/JPY: Neutral: Rebound has room to extend to 114.95.

Despite the quiet trading over the past few days, the undertone for USD still appears to be positive even though the odds for a stronger rebound to test the major 114.95 resistance have diminished. USD has to move and stay above 114.30 within these 1 to 2 days or the prospect of further USD strength would continue to decrease. 114.95 is a rather strong resistance and at this stage, a sustained move above this level seems unlikely. On the downside, key support is still at 113.30/35.

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