EUR/USD: Bearish: Diminished odds for further down-move.
We mentioned in recent updates that EUR has to move below the 1.1230 support soon or risk a rapid loss in downward momentum.
The scenario is playing out and the strong rebound yesterday has clearly diminished the odds for further down-move but only a move above the 1.1395 stoploss would indicate that a short-term low is in place.
GBP/USD: Neutral: Daily close above 1.4455/60 would shift outlook to bullish.
We have held a neutral view on GBP for close to a month now and since then this pair has traded choppily within a broad 1.4000/1.4455 range (see chart below). Upward momentum is improving rapidly and a daily closing above the late March high of 1.4455/60 would indicate that GBP is ready to move higher in the coming weeks.
In the meanwhile, this pair is expected to remain underpinned unless there is move back below 1.4240 within these couple of days (1.4300 is already a strong short-term support).
AUD/USD: Bullish: Target a move to 0.7850.
We just turned bullish yesterday and there is no change to the view.
The immediate target is at 0.7850 and the stop-loss remains unchanged at 0.7660 (even though 0.7700 is likely strong enough to hold any short-term pull-back).
USD/JPY: Neutral: In a broad 107.65/110.00 range.
There is no change to our view wherein we expect USD to trade in a broad 107.65/110.00 range for now.
