Forex Tech Targets

EUR/USD: Bearish (since 23 May 18, 1.1778): Diminished odds for further EUR weakness.

EUR touched a high of 1.1724 yesterday, several pips below the ‘stop-loss’ level for the current bearish phase at 1.1730. As highlighted yesterday, the odds for further EUR weakness have diminished but only a break of 1.1730 would indicate that a short-term low is in place. From here, unless EUR can move and stay below 1.1580 by end of today, a break of 1.1730 would not be surprising. Looking forward, a breach of 1.1730 would suggest a slightly higher EUR in the days to come but any strength is viewed as part of a 1.1580/1.1800 neutral consolidation phase and not the start of a sustained up-move.

AUD/USD: Neutral (since 11 May 18, 0.7525): Immediate bias is for a test of 0.7605.

AUD touched a high of 0.7593 yesterday and the strong resistance indicated at 0.7605 was untested. Despite the subsequent pull-back from the high, we continue to detect a supportive undertone and still see chance for a test of 0.7605. That said, it is too early to expect the start of a bullish phase as only a break of the major 0.7645 level would indicate that AUD is ready to move higher on a sustained basis

NZD/USD: Neutral (since 22 May 18, 0.6945): Recovery has room to extend to 0.7050.

We highlighted yesterday that the recovery in NZD appears incomplete and there is room for extension to 0.7050. NZD subsequently touched a high of 0.7024 before easing off. Despite the pull-back, the undertone is still clearly positive and we continue to hold the view that NZD has room to move higher to 0.7050. At this stage, the prospect for a sustained move above this level is not high even though an ‘overshoot’ to the next resistance at 0.7075 would not be surprising. On the downside, only a break of 0.6940 (‘key support’ previously at 0.6910) would indicate that the current upward pressure has eased.

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Source: efxdata.com