Tech Targets: EUR/USD, GBP/USD, AUD/USD, NZD/USD, USD/JPY - UOB
EUR/USD: Bearish: Room to extend lower but 1.0820 is a major support.
The current short-term consolidation/correction phase is taking longer than expected as EUR continues to hold above the 1.1095/00 support.
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Downward momentum is beginning to show signs of slowing but as long as 1.1210 is intact, we are not giving up on our bearish view just yet. That said, the prospect for a sustained down-move has clearly dimmed and EUR has to move and stay below 1.1095 within these couple of days or the risk of an interim low would continue to increase.
GBP/USD: Bearish: A move to 1.3000 would not be surprising.
GBP spent another day trading in a relatively narrow range and the strong downward momentum after Brexit is showing further signs of slowing. That said, another leg lower to the 1.3000 target cannot be ruled out just yet.
AUD/USD: Shift from neutral to bullish: Target 0.7600 followed by 0.7650.
As highlighted yesterday, a daily closing above 0.7510 would shift the outlook for AUD to bullish. The immediate target is at 0.7600 followed by the post-Brexit high of 0.7650.
NZD/USD: Shift from neutral to bullish: Target 0.7305.
The clear break above 0.7200 has shifted the neutral outlook to bullish. The immediate target is for a move to the post-Brexit high of 0.7305.
USD/JPY: Neutral: In a broad 101.00/105.00 range. [No change in view].
As indicated last Friday, the recent short-term USD strength is viewed as a part of a consolidation phase and not the start of a sustained rally. The quick pull-back from the 103.39 high last Friday reinforces our current neutral view for this pair. The near-term outlook remains mixed and we expect further sideway trading, likely within a broad 101.00/105.00 range.
