The following are the intraday outlooks for EUR/USD, USD/JPY, AUD/USD, and CAD/JPY as provided by the technical strategy team at SEB Group.
EUR/USD: Is the near-term correction over? The correction up from the supportive 55day exponentially weighted moving average band may, or may not be over. Loss of thought support at 1.1233 would be a hint of that it is more confidence that it really is needs s sub-1.1180 move. Over 1.1320 would target 1.1353/70 instead.
USD/JPY: 118.25 remains a sore point. Bids in the low-119s buffered the thump but more is needed to escape a test of a critical 118.25 – below which one must strap in for a dive to and below 116.15 (some would look for a fair bit more than that). A move back over wider resistance at 121.76/123.15 is needed to put the market back on safer ground. Current intraday stretches are located at 119.15 & 121.00.
AUD/USD: Low enough to trigger a correction? The psychologically interesting 0.70 ref was violated this morning. Rumored strikes/barriers there had less of an impact it seems and price action indicates that buyers have responded. A “Shadow” below/close above 0.7000 would add a print, leading to thoughts of a correction higher materializing- then with nearby refs at 0.7065, 0.7145 & 0.7210/17 in mind. Current intraday stretches are located at 0.6985 & 0.7095.
CAD/JPY: Rejected from the neckline. The strong rejection from the neckline/breakaway gap is good news for bears as it clearly indicates an end to the recent upside correction. Today’s bounce should preferably end around current levels (above 91.50 there will be another neckline test before taking the next step lower). The next key downside support is 86.33, a point that if passed will further enhance a longer term bearish view.
‘This content has been provided under specific arrangement with eFXnews.’