The following are the intraday outlooks for EUR/USD, EUR/JPY, and USD/CAD as provided by the technical strategy team at SEB Group.
EUR/USD: Consolidation before lower. After several marginally new lows yesterday failed to attract any follow through selling the market started to correct the “stretch” (outside the 55d Bollinger bands). Also underpinned by bullishly diverging hourly momentum indicators it’s not that surprising to find prices higher this morning. Short term this corrective bounce might bring prices up to the 1.08-area before resuming the descent towards the 1.05-area.
EUR/JPY: Might correct some further. Following the false break lower on Monday the pair entered a correction phase. So far the rebound has taken the shape of a common three wave correction with an ideal target at 132.67. So there’s still some room for prices to edge higher (if this morning’s topside rejection from 132.26 wasn’t a premature high). A move below 131.12 confirms that new lows are underway.
USD/CAD: More evidence of a peak in place. With yet another topside spike (and a marginally lower one as well) the case for the outlined downside reaction has grown even bigger. As earlier a break of 1.3225 will add a lot of confidence to a 1.3039 or even 1.2800 case.
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