The following are the intraday outlooks for EUR/USD, USD/CAD, EUR/JPY, and GBP/USD as provided by the technical strategy team at SEB Group.
EUR/USD: Rejected from the resistance zone. The bearish engulfing candle emanating from within the resistance zone is a strong indication of a possible correction peak put in place. More selling is probably in the pipeline after breaking 1.1190 (kind of a weekly swing level). For now offers are expected to cap upside attempts around the mid body point of yesterday’s candle, 1.1385.
USD/CAD: Rapidly homing in on a 1.2205 test. The two consecutive false downside breaks (parts of the triple bottom) and the bullish divergence has now turned the tide and the pair is accordingly rapidly moving higher towards the triple bottom confirmation point, 1.2205. A break, which we find highly likely, will thereafter put the 55d ma band in play. Also the CAD/JPY top (see yday TA) is playing out well with a massively bearish candle printed yesterday.
EUR/JPY: Returning sellers. Also the second attempt (despite a new reaction high) above the February high, 136.68, was rejected and this time the rejection became a lot more powerful than the preceding day. A small bearish divergence will also help underpinning a move lower and so does the rising wedge (terminating pattern) formation. So all in all increasing downside pressure expected. A rebound should attract sellers around 136.15.
GBP/USD: Should extend near-term losses. The move distancing a recent 1.5815 peak (inside the descending 233day moving average band) looks set to be extended for at least a test of the ascending 8day "TenkanSen", now at 1.5530. A loss of support there would set bigger implications in motion and argue for further decline to also test the slower 21day "Kijun-Sen", now at 1.5335. Current intraday stretches are located at 1.5550 & 1.5785.
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