The following are the intraday outlooks for EUR/USD, USD/JPY, and Crude Oil as provided by the technical strategy team at SEB Group.
EUR/USD: Downside back in focus. We briefly touched the 1.3651/58 Fibo selling window before turning lower and ending the latest minor upside reaction. Full focus should now be paid to the 1.3565/75 support given that a break probably will induce a move aiming below the June low, 1.3503. Today offers are expected to be found in a 1.3610/17 range.
USD/JPY: Eroding support. An important step lower (as part of our call for a minimum dip to 99.39) was taken yesterday when the 101.24 support gave way. After numerous stops had been cleared the pair recovered partly the losses made but did so in a corrective manner. We therefore expect more selling to be in the pipeline. The next key event should hence be to test and break the 100.76/81 key support, the final barrier to the minor correction target at 99.39.
BRENT CRUDE: $108.90 Finally a buying response. At last the market responded to a support point as the move below the 78.6% Fibo support became immediately rejected. The bullish engulfing candle created (also underpinned by a small bull divergence in 13d stochastic) most likely marks the start of at least a recheck of the range ceiling. On a longer term basis it will of course be very important whether this will be yet another higher low i.e. keeping the long term upside pressure intact.
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