TECH TARGETS: EUR/USD, GBP/USD, AUD/USD, NZD/USD, USD/JPY - UOB

EUR/USD: Neutral: Bullish if daily close above 1.1400.

We are holding on to the view that only a daily close above 1.1400 would indicate that the start of a sustained up-move towards and beyond last October’s high of 1.1495.

In the meanwhile, this pair is expected to remain underpinned with support at 1.1330 but only a break back below 1.1270 would indicate that a short-term top is in place.

GBP/USD: Neutral: Upward pressure has eased, back in a broad 1.4050/1.4450 range.

The break of the 1.4250 support last Friday indicates that the recent upward pressure has eased. The price action was not surprising as we have highlighted that only a clear break above 1.4470 and more importantly last month’s peak of 1.4514 would indicate the start of mid-term rally.

For now, this pair has likely moved back into a 1.4050/1.4450 consolidation phase. To put it another way, there is no change to the current neutral outlook for GBP.

AUD/USD: Bullish: Upside potential limited to 0.7740.

There is no change to our bullish view but as pointed out in recent updates, the potential for the current bullish phase in AUD is likely limited to 0.7740.

Stop-loss is unchanged at 0.7550 but 0.7600 is already a strong support.

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NZD/USD: Bullish: Target 0.7000.

There is no change to our bullish NZD view and we continue to target a move to 0.7000.

Last Friday’s drop is viewed as a short-term correction/consolidation phase and only a break below 0.6800 would indicate that our bullish view is wrong.

USD/JPY: Neutral: Increasing downside risk.

The downside risk has clearly increased with the unexpected sharp drop last Friday. However, supports are stacks at 111.00 followed by last month’s low at 110.65 and at this stage, it is unclear whether the current weakness can extend significantly below these major supports.

That said, this pair is expected to remain under pressure in the next few days unless it can reclaim 112.45.