The following are the intraday outlooks for EUR/USD, USD/JPY, GBP/USD and USD/CAD as provided by the technical strategy team at SEB Group.
EUR/USD: Probably more upside potential. The correction continues to make way north and there’s probably more to come near term given the overlapping of the 31 Mar low point, 1.0713. One rather likely alternative is that we are creating a bear triangle and as such prices should rise closer to 1.0940 before stalling (even though 1.0798, the mid body point of last week’s falling benchmark candle also is a viable target).
USD/JPY: Walking a thin line. Both yesterday and today (so far…) the 118.71 key support has survived downside tests (but for how long?). The latest bounce from 118.33 (Mar 26) looks clearly corrective to us and hence impose a clear threat of break lower. Also the since early March persisting bearish MACD divergence (following the false break above 121.86) is a fact that suggests we’re due for possible a more profound setback.
GBP/USD: Another 55d ma band test is due. The sellers has clearly lost the initiative with the latest break lower attracting few if any follow through sellers. Also the bullish divergence in MACD warns that selling has been overextended. So most factors short term pointing north and a bounce back to the 55d ma band will probably be seen over the coming week.
USD/CAD: A correctional “Double Zigzag”. Recent losses alters an earlier straight “A-B-C” correction into a thought more complex “Double Zigzag” (which repeats the “A-B-C” twice before it’s completed. There are Fibo attraction/support below from 1.2245 and lower to consider in this move once the lower end of the cloud 8at market) gives way. Resistance is likely strong in the 1.2385\1.2510-area and only over 1.2667 would end the sequence of lower highs and lower lows to resume the trend.
'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 declines below 1.0700 as USD recovery continues
EUR/USD lost its traction and declined below 1.0700 after spending the first half of the day in a tight channel. The US Dollar extends its recovery following the strong Unit Labor Costs data and weighs on the pair ahead of Friday's jobs report.
GBP/USD struggles to hold above 1.2500
GBP/USD turned south and dropped below 1.2500 in the American session on Thursday. The US Dollar continues to push higher following the Fed-inspired decline on Wednesday and doesn't allow the pair to regain its traction.
Gold slumps below $2,300 as US yields rebound
Gold extended its daily slide and dropped below $2,290 in the second half of the day on Thursday. The benchmark 10-year US Treasury bond yield erased its daily losses after US data, causing XAU/USD to stretch lower ahead of Friday's US jobs data.
Top 3 Price Prediction BTC, ETH, XRP: Altcoins to pump once BTC bottoms out, slow grind up for now
Bitcoin reclaiming above $59,200 would hint that BTC has already bottomed out, setting the tone for a run north. Ethereum holding above $2,900 keeps a bullish reversal pattern viable despite falling momentum. Ripple coils up for a move north as XRP bulls defend $0.5000.
Happy Apple day
Apple is due to report Q1 results today after the bell. Expectations are soft given that Apple’s Chinese business got a major hit in Q1 as competitors increased their market share against the giant Apple.