FOREX DAILY TARGETS

EUR/USD: Bullish (since 28 Jun 17, 1.1335): To exit half of long position at 1.1435.

EUR dipped to a low of 1.1335 yesterday, a few pips above the stop-loss for our bullish view at 1.1330. While short-term downward pressure has waned somewhat, a move below 1.1330 is not ruled out. From here, unless EUR can move and stay above 1.1400 within the next 1 to 2 days, it appears likely that last week’s 1.1445 peak is the extent of the current bullish phase. In the meanwhile, those who are long from 1.1295 should continue to look to exit half of their position if there is move towards 1.1435.

GBP/USD: Shift from bullish to NEUTRAL: In 1.2820/1.3030 range.

The breach of 1.2925 yesterday indicates that last week’s 1.3030 high is the extent of the recent bullish phase. A short-term peak is in place and GBP has likely moved into a 1.2820/1.3030 consolidation phase. Looking further ahead, GBP has move to break clearly above 1.3030 to indicate that it has moved into a bullish phase again but this scenario is unlikely to happen so soon.

AUD/USD: Shift from bullish to NEUTRAL: In a 0.7540/0.7690 range.

AUD plunged below the stop-loss for our bullish view at 0.7630 to hit a low of 0.7591. The sharp drop is clearly unexpected and has severely impacted the longer-term bullish outlook for AUD. In the meanwhile, further AUD weakness would not be surprising but we view any decline as part of a broader consolidation phase and not the start of a major bearish reversal. To put it another way, this pair is expected to trade sideways for now, likely within a broad 0.7540/0.7690 range. 

NZD/USD: Neutral (since 16 Jun 17, 0.7205): Back in a 0.7230/0.7350 range. No change in view, see update from yesterday below. The major 0.7345/50 resistance was tested thrice within the last one week and held all three times. We highlighted yesterday that only a NY closing above 0.7350 would indicate that NZD has moved into a bullish phase. With the sharp pull-back yesterday, upward momentum has eased and this pair has likely moved back into a 0.7230/0.7350 consolidation range.

USD/JPY: Bullish (since 20 Jun 17, 111.65): Above 113.50 could lead to further acceleration towards 114.35. Not much to add to the update from yesterday (reproduced below). 113.50 is still key for the next leg higher. The bullish phase that started 2 weeks ago is still clearly intact as USD soared to hit a high of 113.47 yesterday. This level is just below the strong daily trend-line resistance that is currently residing at 113.50. A break of this strong resistance could lead to further acceleration higher as the next significant resistance is another 85 pips higher at 114.35 (high in May). We have suggested exiting half of long position at 112.75 previously and those who are still long should move their stop-loss higher to 112.40 (from 111.30 previously).

Source: efxnews.com