FOREX Tech Targets

EUR/USD:  Neutral (since 15 Nov 17, 1.1795): In a 1.1780/1.1930 range.

EUR touched a high of 1.1960 earlier this week but has since staged a sharp retreat. From here, the prospect for a sustained move above 1.1960 appears to be quite slim. That said, the current pull-back from the high lacks momentum and the price action is viewed as part of a consolidation phase instead of the start of a sustained down-move. In other words, the outlook for EUR is deemed as neutral for now and sideway trading seems likely in the days ahead, likely within a 1.1780/1.1930 range.

GBP/USD: Shift from neutral to BULLISH: 1.3500 is expected to offer solid resistance.

The strong up-move in GBP yesterday that easily took out the strong 1.3400 resistance came as a surprise. GBP has likely moved into a bullish phase even though there are stacks of strong resistances on the upside. The nearest one is at 1.3500 and this level is expected to offer solid resistance in the coming days. The next resistance is at 1.3570 and at this stage, we do not apportion a high odds for a move towards this level. On the downside, support is at 1.3360 even though only a move below 1.3320 would indicate that our bullish view is wrong.

AUD/USD: Neutral (since 24 Nov 17, 0.7625): In a 0.7530/0.7650 range.

There is no change to the current neutral outlook for AUD (see Chart of the Day update on 24 Nov, spot at 0.7625). The relatively sharp decline yesterday has weakened the undertone but for now, a clear break below the month-to-date low near 0.7530 seems unlikely. Overall, we continue to expect further range trading albeit likely at a lower and narrower range of 0.7530/0.7650 (instead of 0.7550/0.7695 expected previously).

NZD/USD: Neutral (since 23 Nov 17, 0.6880): In a 0.6810/0.6935 consolidation range.

The neutral phase in NZD that started late last week is still intact. NZD moved briefly above the top of the expected 0.6810/0.6935 consolidation range (high of 0.6945) but has since eased off. The price action lacks momentum and further range trading seems likely for now.

USD/JPY: Shift from bearish to NEUTRAL: In a 111.30/112.80 range.

The bearish phase that started about 2 weeks ago has ended as USD took out the strong 111.90 resistance yesterday. USD has likely made a short-term low at 110.83 low earlier this week and the current price action is viewed as part of a 111.30/112.80 consolidation phase. The near-term bias is on the upside but 112.80 is a strong resistance and a clear break above this level appears unlikely for now.

Source: efxnews.com