FX Tech Targets 18.05.2017

EUR/USD: Bullish: Strong rally has scope to extend to 1.1200.

The shift to a bullish stance yesterday was timely as EUR continues to accelerate higher. As indicated, the strong rally has scope to extend further 1.1200. A break above this level would shift the focus to 1.1300.

GBP/USD: Neutral: Immediate upward pressure towards 1.3030.

GBP closed on positive note yesterday but it is not enough to shift the current neutral phase to bullish. That said, the undertone has improved considerably and from here, the immediate pressure is on the upside even though 1.3030 is expected to offer solid resistance. Overall, this pair is expected to stay underpinned in the coming days as long as it can hold above 1.2905.

AUD/USD: Neutral: Rebound has room to extend to 0.7480/85.

There is not much to add as we continue to hold the view that the current rebound in AUD has room to extend higher to test the major 0.7480/85 resistance. AUD has to break clearly above this level to indicate that it has moved into a bullish phase. As long as this pair can continue to hold above 0.7380 (key support previously at 0.7370), the upward pressure would continue to increase

NZD/USD: Neutral: Bullish if NY closing above 0.6970.

We indicated yesterday that “the price action appears to be the very early stages of a basing phase”. The strong daily closing yesterday reinforces our view but NZD has to close above 0.6970 to indicate that it has moved into a bullish phase. This scenario would not be surprising as long as NZD can hold above 0.6870 in the next few days.

USD/JPY: Shift from neutral to bearish: Decline oversold but room for extension to 110.10.

The expected ‘deep pull-back’ towards 112.00 indicated yesterday morphed into a full-fledged slump as USD plunged to a low of 110.54 at the time of writing. While the decline appears to be running ahead of itself, there is no sign of stabilization just yet and extension to 110.10 seems likely. That said, current level of 111.10 does not offer attractive reward to risk as confirmation of a short-term low is only upon a move back above 111.90.

Source: efxnews.com