Tech Targets: EUR/USD, GBP/USD, AUD/USD, NZD/USD, USD/JPY - UOB
EUR/USD: Neutral: Immediate upward pressure towards 1.0770, possibly 1.0825.
There is not much to add as we continue to expect the immediate EUR strength to extend higher towards 1.0770 (with much lower odds for further extension to 1.0825). Only a move back below 1.0635 would indicate that the immediate upward pressure has eased.
GBP/USD: Bullish: Overbought but room for extension to 1.2950.
We just shifted to a bullish stance yesterday and there is no change to the view. Despite being overbought, the current GBP rally appears to have scope to extend higher towards 1.2950. Only a move back below 1.2660 would indicate that a temporary top is in plac
AUD/USD: Neutral: Increasing risk of further weakness towards 1.0400.
While we indicated yesterday that AUD has made a shortterm top at 0.7612 on Monday (17/4), the subsequent sharp and rapid pace of decline came a surprise. Downward momentum has improved considerably and from here, the risk of a break below last week’s low near 0.7475 is quite high. A daily closing below this strong support would indicate that AUD has moved into bearish phase with an immediate target of 0.7400. All in, the current downward pressure is expected to increase quickly unless AUD can move and stay above 0.7570 within these 1 to 2 days. On a shorter-term note, 0.7530 is already a rather strong leve
NZD/USD: Neutral: Lower odds for extension to 0.7090.
Despite the strong bounce after the release of the stronger than expected inflation data this morning, we still do not attach a high probability for NZD to extend its recent strength towards 0.7090. That said, only a move below 0.6980 would indicate that a short-term top is in place. In the meanwhile, this pair could grind higher towards 0.7070 within the next couple of days.
USD/JPY: Bearish: To take partial profit at 108.10/15.
Downward momentum continues to wane and the risk of short-term low has increased considerably. In other words, the bearish phase that started last Wednesday (12/4, spot at 109.65) appears to be close to ending. Confirmation is upon a move above 109.30. Those who are shorts should look to book profit if there is any dip towards 108.10/15.