EUR/USD: Neutral: Recovery to extend to 1.0825/30.
While EUR closed on a slightly weak note, the undertone is still positive and as long 1.0670 is not taken out, we continue to expect another leg higher towards 1.0825/30. This level is the year-to-date high and is a solid resistance and is not expected to yield so easily (next resistance is at 1.0870/75).
AUD/USD: Neutral: Bullish only if above 0.7740.
The undertone for this pair is still positive but as indicated in recent updates, AUD has to move clearly above 0.7740 to indicate that is has moved into a bullish phase. This appears to be a likely scenario unless there is a drop back below 0.7630.
NZD/USD: Neutral: Scope for extension to 0.7085.
There is no change to view wherein we expect the current NZD strength to extend higher to 0.7085. While the undertone has improved, it is too early to expect a sustained up-move (next resistance is at 0.7120). Only a move back below 0.6945 would indicate that a short-term top is in place.
USD/JPY: Neutral: Extension lower unlikely to have enough momentum to reach 111.65/70.
The ease of which the 112.70 support was taken out last Friday came as a surprise. Downward momentum has improved and while the immediate bias is still clearly on the downside, we still see solid support at 111.65/70 but doubt this support can be taken out. That said, the downward pressure would continue to grow unless USD can reclaim 113.70 within these few days.
Source: United Overseas Bank Global Economics & Markets ResearchOriginal Article
