Forex Tech Targets: EUR/USD, GBP/USD, USD/JPY, AUD/USD, NZD/USD

EUR/USD: Bullish: Still bullish but odds for extension to 1.1300 are not high.

EUR eked out a marginal new high of 1.1267 yesterday before easing off quickly. The price action is not surprising as we have held the view that that “while the outlook for this pair is still bullish, the odds for extension to 1.1300 are not high”. That said, only a break below 1.1130 would indicate that the bullish phase that started last Wednesday, 17 May has ended. We have suggested taking partial profit at 1.1170 last Friday and those who are still long should look to exit their position if there is another push towards 1.1300.

GBP/USD: Neutral: Likely in a topping process.

While there is no change to the current neutral outlook for GBP, the price action over the past few days is beginning to look increasingly like a topping process. The current neutral phase has been intact for about 3 weeks now and from here, a clear break below 1.2920 would greatly increase the odds for a move towards the 1.2830 low seen earlier this month. Overall, the current mild downward pressure would continue to increase over the next several days as long GBP holds below the strong 1.3050 resistance.

AUD/USD: Bullish: Immediate target of 0.7560.

We just turned bullish AUD yesterday and there is no change to the view. While we prefer a stronger closing in NY and a shallower pull-back (high has been 0.7517), the bullish outlook appears intact for now. Only a break below 0.7430 would indicate that our bullish expectation is wrong. Immediate target remains unchanged at 0.7560.

NZD/USD: Bullish: Immediate target of 0.7050/55.

We turned bullish NZD yesterday and there is no change to the view. NZD rose quickly to hit a high of 0.7047 which is just below our immediate target of 0.7050/55. Overbought short-term indicators could lead to a couple of days of consolidation but as long as 0.6930 is not taken out, the prospect for a break above 0.7050/55 appears to be quite high. A move above 0.7050/55 would shift the focus to 0.7090.

USD/JPY: Shift from bearish to neutral: In a broad 110.20/113.10 range.

The bearish phase that started last Thursday has ended as USD took out 111.90 (111.99 high at time of writing). The price action is not surprising as we have warned of the waning momentum over the past couple of days. From here, USD is deemed to have moved into a consolidation phase and in view of the outsized drop last week, a broad sideway consolidation between 110.20 and 113.10 would not be surprising.

Source: efxnews.com