Tech Targets: EUR/USD, GBP/USD, AUD/USD, NZD/USD, USD/JPY
EUR/USD: Neutral: Rebound has scope to extend higher to 1.0750.
While we indicated yesterday that the odds for EUR to extend lower have diminished, the sharp and rapid overnight EUR strength was unexpected. The 1.0568 low seen on Monday (10 Apr) is viewed as a short-term base and the current rebound has scope to extend higher towards 1.0750. At this stage, a sustained move above this level is not expected. Support is at 1.0620 followed by 1.0565/70.
GBP/USD: Neutral: Anticipating a break above 1.2615.
GBP closed higher for the third straight day and the up-move from last Friday (07 Apr) low of 1.2365 is gaining momentum rapidly. Based on the current momentum, a move above last month’s peak near 1.2615 seems likely. A break above this level would shift the focus toward 1.2706, the high in February. Only a move below 1.2450 would indicate that the immediate upward pressure has eased.
AUD/USD: Neutral: short term low in place, rebound to extend to 0.7630.
The ease of which the strong 0.7550 resistance was taken out suggests that AUD has made a short-term low near 0.7470/75 (low seen over the past three days). The sharp rebound appears to have scope to extend higher towards 0.7630 but at this stage, it is too early to expect a sustained rally. Any pull-back in the next few days should hold above 0.7470/75
NZD/USD: Neutral: short term low in place, rebound to extend to 0.7050.
Similar to AUD/USD, the sharp bounce yesterday suggests that NZD has made a short-term low at 0.6910 yesterday. As long as 0.6900/10 stays intact, the current rebound has scope to extend higher to 0.7050.
USD/JPY : Bearish: below 108.60; shift focus to 108.00.
The shift to a bearish stance yesterday was timely as USD continues to decline at a rapid pace. The 108.60 target appears to be within reach and break of this level would open up the way for a move to 108.00.