The following are the intraday outlooks for the USD Index, EUR/USD, EUR/JPY, and EUR/CAD as provided by the technical strategy team at SEB Group.
USD INDEX: Filled the weekend gap. The weekend gap (82.33-58) was yesterday filled and the buyers were returning at the low end of it hence preventing a sell signal to be triggered. The behavior leaves us in kind of a stalemate where the overbought and stretched conditions continues to warn of a coming setback whereas the price action at 82.33 suggests continued buying up to the theoretical wave three target, 83.16 (and then beginning the more profound correction).
EUR/USD: So far not much of a reaction. Yesterday’s initial attempt higher stalled already at 1.3222, hence not even filling the weekend gap to 1.3240. The reasons (see yday’s TA) for a bit more profound upward reaction however prevails so we still recommend shorts to trim down positions and especially so if a marginally new low will be traced out.
EUR/JPY: Small rebound then lower. The recent upward attempt, like many others, again ended in the bearishly sloped 55d ma band and after Monday’s bearish key day reversal the pair has traded lower each and every day. Yesterday however a minor reaction higher begun and we primarily sees it ending at 136.95. The awaited selling response will be interesting to follow as a close today below 137.00 will create a weekly bearish engulfing candle and if ending below 136.82 a bearish key week reversal will be put in place. Both outcomes strongly argue for lower levels in the month to come.
EUR/CAD: Time to deal with the stretches. Both in the dailies (short-term) and in the weeklies (medium-term) the cross has come a long way now and support and stretches in those timeframes ought to have impact. Trend-following tools point lower, but a healthy rebound to at least 1.4410 would be welcome to clean out a few late and vulnerable shorts.
'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
AUD/USD drops toward 0.6500 after dismal Aussie Retail Sales, mixed China's PMIs
AUD/USD is extending losses toward 0.6500, hit by an unexpected drop in the Australian Retail Sales for March while China's NBS April PMI data came in mixed. Upbeat China's Caixin Manufacturing PMI data failed to lift the Aussie Dollar amid a softer risk tone and the US Dollar rebound.
USD/JPY holds rebound to 157.00 after Monday's suspected intervention-led crash
USD/JPY is trading close to 157.00, staging a solid rebound in the Asian session on Tuesday. The pair reverses a part of heavy losses incurred on Monday after the Japanese Yen rallied hard on probable FX market intervention by Japan's authorities. Poor Japan's jobs and Retail Sales data weigh on the Yen.
Gold price traders remain on the sidelines ahead of FOMC decision on Wednesday
Gold price remains confined in a narrow range as traders prefer to wait on the sidelines. Reduced Fed rate cut bets revive the USD demand and act as a headwind for the metal. Investors now await the FOMC decision and US macro data before placing directional bets.
BNB price risks a 10% drop as Binance founder and ex-CEO Changpeng Zhao eyes Tuesday sentencing
Binance Coin price is dumping, with the one-day chart showing a defined downtrend. While the broader market continues to bleed, things could get worse for BNB price ahead of Binance executive Changpeng Zhao sentencing on Tuesday, April 30.
FX market still on intervention watch
Asian foreign exchange traders will be particularly attentive to any signs of Japanese intervention on Tuesday, following reports of Tokyo's involvement in the market on Monday. This intervention action propelled the yen upward from its 34-year low of 160 per dollar, setting off shockwaves of volatility.