PIG TODAY-03.04.2017-Tech Targets: EUR/USD, GBP/USD, USD/JPY, AUD/USD, NZD/USD - UOB

EUR/USD: Neutral: Immediate downward pressure towards 1.0595.

The pace and depth of the pull-back from last week’s 1.0904 high came as a surprise. The immediate pressure is still clearly on the downside towards the major 1.0595 support even though oversold short-term conditions suggest that this level is unlikely to come into the picture so soon. Overall, EUR has to reclaim 1.0760 to indicate that the immediate downward pressure has eased.

GBP/USD: Neutral: Bullish if daily closing above 1.2615.

The rapid and sharp rebound from last Wednesday’s low of 1.2377 was unexpected. Upward momentum has picked up strongly but only a daily closing above last week’s 1.2615 high would indicate that GBP has entered a bullish phase. The odds for such a move appear to be better than ‘even’ at this stage. In the meanwhile, GBP is expected to stay underpinned with 1.2435 acting as a solid support.

AUD/USD: Neutral: A retest of 0.7585/90 seems likely. 

AUD closed on a rather weak note last Friday and the recent positive undertone has eased. The immediate bias has shifted to the downside and a retest of last week’s low near 0.7585/90 seems likely. This is a major support and a clear break of this level would greatly increase the odds of a deeper down-move towards the March’s low of 0.7490. Overall, the current downward pressure is expected to increase unless AUD can move and stay above 0.7660 in the next few days.

NZD/USD: Neutral: In a 0.6950/0.7090 range.

NZD has been trading choppily in recent days but essentially held within the expected 0.6950/0.7090 consolidation range. Indicators are showing mixed signals and at this stage, there is no pre-indication that a break out of the range is imminent.

USD/JPY: Neutral: In a 110.00/112.20 range.

USD hit a high of 112.19 last Friday but eased off quickly. The recent positive undertone has eased and the current movement is viewed as the early stages of a consolidation phase, expected to be roughly within last week’s range of 110.10/112.20.

Source: efxnews.com