EUR/USD: Neutral: In a 1.1020/1.1250 range.
While shorter-term momentum has improved considerably, it is not enough to suggest that the current neutral outlook for EUR has shifted to bullish. However, the immediate pressure is clearly on the upside and the current EUR strength could extend higher within these few days to test the top end of our expected sideway trading range at 1.1250. Overall, only a move back below 1.1100 would indicate that the immediate upward pressure has eased.
AUD/USD: Bullish: To take partial profit at 0.7805.
The bullish AUD phase that started last week is still clearly intact. In fact, the expected up-move in AUD has been more rapid and impulsive than anticipated as the rally over the past couple of days easily took out major resistances at 0.7675 and 0.7720. There is another strong level at 0.7765 (high of 0.7760 earlier this morning) and a clear break above this level would shift the focus towards the year-to-date high at 0.7836. Overall, only a move back below 0.7640 would indicate that the bullish phase has ended. In view of the rapid and extended rise, those who are long from last week may like to book partial profit ahead of the 0.7836 high (say near 0.7805/10).
USD/JPY: Neutral: In a 100.50/102.80 range.
The outlook for USD is viewed as neutral and we expect this pair to trade within a broad 100.50/102.80 range for now.
Copyright © 2016 UOB, eFXnews™Original Article
