The following are the intraday outlooks for EUR/USD, EUR/JPY, and AUD/USD as provided by the technical strategy team at SEB Group.
EUR/USD: Homing in on the 1.04/05 target. The pair ended last week with a steep decline, which was confirmed by the break of 1.0667. A fresh trend low has thereafter been set and some further losses towards 1.0580/70 should also be penciled in before another minor correction probably will be due. Thereafter the final step down into the broader 1.0481/1.0405 support cluster, the ideal target for the current wave three, will be met.
EUR/JPY: Making way south. A big leap lower was taken on Friday (we are still advocating that USD/JPY will be a lagging any dollar rally) and the pair ended at its lowest level since April (and there’s more selling in the pipeline). Our view is still that the upside correction ended in June and that the longer term bear trend is heading for sub 126.08 levels.
AUD/USD: Ending the correction. The recent correction most likely came to an end today and if ending today below 0.7195 a bearish engulfing candle will be put in place arguing for more selling in the days to come. The second leg higher, wave c, has clearly been unjustified given the decline in iron ore and what we now likely will see is a catch up move by the oz.
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