The following are the intraday outlooks for the USD Index, EUR/USD, NZD/USD, USD/CAD, and EUR/CHF as provided by the technical strategy team at SEB Group.
USD INDEX: Starting to correct the stretch. The greenback has during the past week been “stretched” (outside both the 233d as well as the 55d Bollinger bands) to an extent that we haven’t seen for a long time. Yesterday’s bearish engulfing candle suggests that we now have taken the first step to correct this stretch and if continuing below the starting point (Fri close) of the weekend gap, 82.33, more losses should be penciled in near term.
EUR/USD: Will recheck the prior support zone. The decline has during the past days been running on fumes. With all targets for this down cycle (July – now) met, a severe stretch (outside the 233d Bollinger bands) and with an hourly bull divergence we see yesterday’s price action as the first step towards an upward correction. The correction will at least test the prior support zone, 1.3209-1.3295, now acting resistance but a move up to the triangle peak, 1.3433, should certainly not be ruled out at this stage.
NZD/USD: Rise is getting legs. Underpinned by the bullish divergence (and the rebound from former large 2013 triangle ceiling, now acting support) the market continued its climb yesterday. Short term we might run into some offers in the 0.8401/07-area (June & Aug lows) but we think the area soon will be passed which further will enhance the short covering scenario and keeping the 0.8536 as a viable target.
USD/CAD 1.0845 Big move lower has impact. Yesterday’s slump became even more pronounced than thought. A small rebound closer to but not above yesterday's mid-body point at 1.0910 is possible, before extending losses, possibly towards next ref on south at 1.0795. Current intraday stretches are located at 1.0830 & 1.0910.
EUR/CHF: The swissy is about to turn tail. The super-swissy has come a long way against the euro in little time - almost 1% lower in a month and that’s a lot for the low volatile EUR/CHF market. A short-term stretch would kick in not far below, now at 1.2050, and if not before then a U-turn higher should materialize, ultimately aimed to re-test resistance around 1.2120. Current intraday stretches are located at 1.2055 & 1.2090.
'This content has been provided under specific arrangement with eFXnews'.
eFXnews is a financial news and information service. Articles and other information distributed in this service and published on this site are provided in general terms and do not take account of or address any individual user's position. To the extent that some of these articles include suggestions as to various possible investment strategies which users might consider, they do so in only general terms without reference to the personal factors which should determine any user's investment decisions to buy or sell a specific security or currency.
The service and the content of this site are provided and distributed on the basis of “AS IS” without warranties of any kind either, express or implied, including without limitations, warranties of title or implied warranties of merchantability or fitness for a particular purpose. eFXnews and its employees, officers, directors, agents, and licensors do not also warrant the accuracy, completeness or timeliness of the information in any of the articles and other information distributed in this service and included on this site, and eFXnews hereby disclaims any such express or implied warranties; and, you hereby acknowledge that use of the service and the content of this site is at you sole risk.
In no event shall eFXnews and its employees, officers, directors, agents, and licensors will be liable to you or any third party or anyone else for any decision made or action taken by you in your reliance on any strategy and/or advice included in any article and other information distributed in this service and published in this site.
Recommended Content
Editors’ Picks
EUR/USD clings to gains near 1.0750 ahead of US jobs report
EUR/USD clings to modest gains at around 1.0750 after closing the previous two days in positive territory. Investors eagerly await April jobs report from the US, which will include Nonfarm Payrolls and Unemployment Rate readings.
GBP/USD advances to 1.2550, all eyes on US NFP data
The GBP/USD pair trades on a stronger note around 1.2550 amid the softer US Dollar on Friday. Market participants refrain from taking large positions as focus shifts to April Nonfarm Payrolls and ISM Services PMI data from the US.
Gold remains stuck near $2,300 ahead of US NFP
Gold price struggles to gain any meaningful traction and trades in a tight channel near $2,300. The Fed’s less hawkish outlook drags the USD to a multi-week low and lends support to XAU/USD ahead of the key US NFP data.
XRP edges up after week-long decline as Ripple files letter in reply to SEC’s motion
Ripple filed a letter to the court to support its April 22 motion to strike new expert materials. The legal clash concerns whether SEC accountant Andrea Fox's testimony should be treated as a summary or expert witness.
US NFP Forecast: Nonfarm Payrolls gains expected to cool in April
The NFP report is expected to show that the US economy added 243,000 jobs last month, sharply lower than the 303,000 job creation seen in March. The Unemployment Rate is set to stay unchanged at 3.8% in the same period.