FOREX Tech Targets

EUR/USD: Neutral (since 07 Aug 17, 1.1785): Bearish if NY closing below 1.1680.

The neutral phase that started on 07 Aug (spot at 1.1785) is still intact as EUR traded sideways to slightly lower for the past two weeks within a range of less than 200 pips (between 1.1661 and 1.1846). While we continue to hold a neutral view for this pair, we are anticipating a deeper pull-back but only a NY closing below 1.1680 would indicate that a move towards an immediate target of 1.1580 has started. This scenario still seems likely unless EUR can move and stay above 1.1790 in the next 1 to 2 days. A move back above 1.1790 would suggest further range trading. 

GBP/USD: Bearish (since 07 Aug 17, 1.3045): Room for extension lower to 1.2775.

The bearish phase that started two weeks ago  is still intact as GBP eked out a ‘fresh low’ of 1.2832 last Friday. Downward momentum appears to be struggling even though another leg lower towards the major support at 1.2775 is not ruled out just yet. Only a move back above 1.2970 would indicate that the bearish phase has ended (on a shorter-term note, GBP should ideally hold below the 1.2920 resistance).

AUD/USD: Neutral (since 17 Aug 17, 0.7925): Immediate upward pressure but 0.7980 expected to offer solid resistance.

We just shifted to a neutral AUD stance late last week  and were of the view that the strong rebound from the low of 0.7808 has room to extend higher to 0.7980. As highlighted, this is a strong resistance and a sustained move above this level seems unlikely for now. On the downside, a move back below 0.7850 would not only indicate that the current mild upward pressure has eased but also an increased risk of a break below the rising trend-line support which is currently sitting near 0.7820.

NZD/USD: Neutral (since 17 Aug 17, 0.7310): In a 0.7240/0.7370 range.

There is not much to add as NZD traded mostly sideways last Friday. The outlook for this pair is still viewed as neutral and we continue to anticipate further range trading, likely between 0.7240 and 0.7370. 

USD/JPY: Neutral (since 15 Aug 17, 110.10):  USD under pressure unless can reclaim 110.00.

USD took out the low end of the previously expected 109.20/111.05 consolidation range with a low of 108.58 last Friday but the decline was not sustained. Despite the sharp bounce from the low, short-term downward pressure has shifted to the downside even though any weakness from here is expected to encounter solid support at 108.55/60 followed by the year-to-date low near 108.10. At this stage, the odds for a move below these levels are not high but would increase unless USD can reclaim 110.00 in the coming days. 

Source: efxnews.com