The following are the latest technical setups for EUR/USD, and USD/JPY as provided by the technical strategy team at Credit Suisse.
EURUSD has fallen sharply again to leave the immediate bias bearish to our core target at 1.0836/0765.
EURUSD fell sharply again post Thursday’s ECB meeting, easily removing the recent cycle low at 1.1460, the 1.1381 level, and directly removing the 61.8% retracement of the entire 2000/08 rise at 1.1212.
We allow for a bounce here, however, our core target remains lower at 1.0836/0765.
An overshoot to multi-year trend support at 1.0588 should be allowed for, but we would expect this to hold at first. Bigger picture though, we see scope for parity.
Resistance shows at 1.1455/60 initially then 1.1498/1500, with 1.1540/41 expected to cap to keep the trend directly lower. Above 1.1679/84 is needed to ease downside risks.
CS booked profit on EUR/USD short at 1.1215 and is currently flat on the pair.
USD/JPY: The immediate spotlight stays on 118.89/96, above which is needed to see scope for 119.81/120.00.
USDJPY remains capped below the recent highs at 118.89/96. A break above here is needed to resolve the range higher for strength towards the price and potential downtrend resistance at 119.81/120.00, where we would expect selling to show.
A direct overshoot though can see a move for 120.83/76, followed by the 2014 peak at 121.86.
Near-term support shows at 117.25/18. Below 116.93/85 is needed to see further weakness for 115.86, ahead of pivotal support at 115.57/46 which we would look to ideally hold. Strategy: Long at 117.80, stop below 117.00, for 119.95.
CS maintains a long USD/JPY from 117.80 targeting 119.95.
This content has been provided under specific arrangement with eFXnews.
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.