The following are the intraday outlooks for EUR/USD, EUR/JPY, and USD/CAD as provided by the technical strategy team at SEB Group.
EUR/USD: Continues to consolidate/correct. In absence of a new test of the 1.1067/63 key support the market continued the consolidation/correction. With an hourly three wave move down since yesterday’s peak, 1.1182, is fair to assume that we will see the market making an attempt up into the 1.12’s (where the latest benchmark mid body point at 1.1232 marks a possible target).
EUR/JPY: Ready to thrust lower. The bear flag that is under construction will soon be finished leaving the pair in a very vulnerable position for another sell off. Yesterday’s topside spike (from above the mid body point of the latest falling benchmark candle) suggests that a downturn is near so keep an eye at the neckline of the potential head and shoulders top. Breaking 133.86, the recent reaction low, will set a move in motion that will at a minimum target 132.29 (strong support thereafter at 132.9) and ideally (if it’s a head and shoulders target and not a common three wave, a-b-c, downside correction) 130.40.
USD/CAD: Last chance to get onboard. Given the small size of the past days downside candles together with repeated rejections from the 1.2170-area it is fair to assume, we think, that the selling pressure is very light and the interest to bid being high. The setup is a very bullish and the continuation of the previous surge will probably start within hours.
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