The following are the intraday outlooks for USD Index, EUR/USD, and USD/JPY as provided by the technical strategy team at SEB Group.
USD index: Likely to test sup at 96.17 before up. Last week ended with the dollar on retreat with increased pressure on dynamic support coming with the still ascending 55day exponentially weighted moving average band (97.15/96.25). lntraday players may shorten a European 'lower Range Extension" (a move below the opening hour range) but then the stop should equal the high in this range to be. Meanwhile a longer bullish play should be held back until better evidence of the correction lower really is fading.
EUR/USD: Targeting the high-1.09s. The market nailed the first session close inside the bearish "Cloud" in ages after a strong close last week. Next up would be the descending 55day exponentially weighted moving average band (1.0915\1.1055) within which a short-term "Equality point" (1.0990) works as the correctional objective - at least as long the market hold from breaking back below 1.0660. So rest a bearish play until better signs of an ending correction materialize. Current intraday stretches are located at 1.0770 & 1.0935.
USD/JPY: In range with a downside tilt. The pair should, in a short-term perspective, be approached from the short side, but for the opening of the week, selling below supports at 118.53 & 118.33 is needed to make an investment in a short play worthwhile. Mid-body resistance at 119.30 may attract fresh selling at lower levels so this point should be watched intradaily. Otherwise current intraday stretches are located at 118.45 & 119.65.
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