The following are the intraday outlooks for USD Index, EUR/USD, and GBP/USD as provided by the technical strategy team at SEB Group.
USD INDEX: All corrective targets met. The buy response from within the prior triangle area fits well with a downside correction being in its latter stages (and a possible completed double zigzag correction). In the hourly chart a minor inverse head and shoulders bottom seems to be under construction (breaking above 95.40 will be the trigger) so all in all risks seems to be skewed to the topside for the coming day(s).
EUR/USD: Enough short covering? The rally stalled and rolled over to the downside on Friday posting the first net down day in more than a week. Even though it currently is impossible to tell whether a correctional peak has been put in place or not the short term outlook points at an initial move lower. A first hand target for an attempt lower will be the 1.1072 – 1.1037 area.
GBP/USD: Resuming the bear trend. After overshooting the ideal ending point for wave C, 1.5344, the pair soon made a 180 degree turn and begun falling and doing so in an impulsive manner. The long weekly upper spike, the return back below the 2010 trend line and a bearish hourly wave pattern all suggests that the past weeks correction now might be over and done. Unless returning above 1.5304 we should be expecting more losses within shortly (a close below the bearishly sloped 55d ma band will be the next signal to look for).
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