The following are the latest technical setups for EUR/USD, USD/JPY, GBP/USD, and USD/CAD as provided by the technical strategy team at Barclays Capital.
EUR/USD: Lack of downside follow through below 1.0815 and broad profit taking on USD longs signals temporary respite from the down-move. We prefer to use upticks as an opportunity to sell at better levels. Resistance near 1.1045 is expected to generate selling interest, Our downside targets are towards 1.0675 and then the 1.0460 year-to-date lows.
USD/JPY: Tuesday’s key reversal day has prompted us to turn neutral in the short term and look for better levels to re-buy. Downside risk is seen towards 123.00, possibly 122.00 before a base can form. Overall we are bullish and look for a move towards the 125.85 highs.
GBP/USD: GBP has remained resilient in the face of a stronger USD. Now that USD bulls are taking a breather, we look for GBPUSD to break above 1.5675 to open our targets near 1.5800 and then the 1.5930 year-to-date highs.
USD/CAD: USD profit taking signals a dip within range. We would look to buy against support in the 1.2655 area. Our upside targets are near the 1.3065 multi-year highs. Breaking above 1.3065 would signal higher towards 1.3465.
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