The following are the intraday outlooks for EUR/USD, USD/JPY, AUD/USD, and GBP/USD as provided by the technical strategy team at SEB Group.
EUR/USD: The euro remains on a slippery slope. Price action may have muted yesterday, but direction remains quite clear. The next hard ref to look out for below comes with a reaction low of 1.3104 printed this week a year ago. Short-term conditions are not stretched as per the deviation from a 21day exponential moving average, or 'monthly average' and this allows for extension towards 1.3065 without exaggerating the move.
USD/JPY: Stretched but bid - testing resistance. The move higher is short-term aggressive. Recant price action goes in line with short-term-following tools and this behavior points higher still. But the deviation from the monthly average may become a problem if not successfully breaking resistance at 104.85/93 (Jan reaction peaks). 1st support is the Aug25 high of 104.49, then comes the 8day 'Tenkan-Sen', now at 104.20. Even stronger support is located at 103.50/15.
AUD/USD: Targeting recent 0.9272/0.9235 lows. Following a late Aug three-wave structure ending at its 'Equality point' and overall resistance, the downside is back in focus. Nearby targets the market is thought to be gunning for are located at 0.9272 & 0.9353. Below the latter would open the bar for the May'14 low of 0.9208. Current intraday stretches are located at 0.9290 & 0.9355.
GBP/USD: Bearishly stuck in the 233d ma band. The inability to bounce from the 233d ma band is clearly a sign of weakness and a likely prelude to a sustained break of it. As we've earlier pointed at, a break of the 233d ma band has been a very good indication of a prolonged period of weakness, so it should certainly not be ignored. Yesterday's up-thrust like top clearly has the potential of marking the high of this anaemic reaction.
eFXnews is a financial news and information service. Articles and other information distributed in this service and published on this site are provided in general terms and do not take account of or address any individual user's position. To the extent that some of these articles include suggestions as to various possible investment strategies which users might consider, they do so in only general terms without reference to the personal factors which should determine any user's investment decisions to buy or sell a specific security or currency.
The service and the content of this site are provided and distributed on the basis of “AS IS” without warranties of any kind either, express or implied, including without limitations, warranties of title or implied warranties of merchantability or fitness for a particular purpose. eFXnews and its employees, officers, directors, agents, and licensors do not also warrant the accuracy, completeness or timeliness of the information in any of the articles and other information distributed in this service and included on this site, and eFXnews hereby disclaims any such express or implied warranties; and, you hereby acknowledge that use of the service and the content of this site is at you sole risk.
In no event shall eFXnews and its employees, officers, directors, agents, and licensors will be liable to you or any third party or anyone else for any decision made or action taken by you in your reliance on any strategy and/or advice included in any article and other information distributed in this service and published in this site.
Recommended Content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.