Morgan Stanley Charts Of The Week: DXY, EUR/USD, NZD/USD
Morgan Stanley picks USD Index (DXY), EUR/USD, and NZD/USD as its technical FX charts of the week, where MS provides its views on their related technical settings and targets.
On the DXY 1-year chart:
"With our bullish risk outlook we look at where the DXY buy or sell levels are. Two trend channels cross at the 95.00 level, suggesting there could be some support around here. Recent USD rallies from MayJuly have been around 5.6%, suggesting the current rally could top around this level of appreciation – which is 97.80. This suggests USD rebounds could be limited at this stage," MS argues.
On the EUR/USD 1-year chart:
"EURUSD has been trading within a range since hitting the 1.0463 low in March. Now sitting in the middle of the channel we expect EURUSD to remain rangebound in the coming months. The upper end of the range is at 1.1975 and the lower end at 1.1075. A move towards 1.1600 would indicate a sell level for us," MS advises.
On the NZD/USD 3-month chart:
"We believe there is a bullish impulsive wave forming in NZDUSD, supporting further upside in the near term. NZDUSD is in a 3 rd wave of a iiird within a larger 3rd wave, maintaining bullish momentum. The next resistance area would be the previous high at 0.6709. A move below the 1st -wave high at 0.6100 would suggest this wave structure is incorrect," MS projects.
