EUR/USD: As long as 1.3199 (reaction high from 1.2945) holds, downtrend from 1.4940 may resume later this week and a daily breach of 1.3000 would re-test of 2011 low at 1.2860. But as daily indicators would display ‘bullish convergences’ on next decline, support at 1.2774 would contain weakness.
GBP/USD: Rebound from 1.5408 suggests recent fall from 1.6167 has made a low there and consolidation with mild upside bias is seen for re-test of 1.5779. But daily close above there is needed to retain bullish prospect of further headway to 1.5877.
USD/CHF: Sharp retreat from December’s near 10-month peak at 0.9549 to as low as 0.9245 last week confirms up move from August’s lifetime low at 0.7072 has finally formed a temporary top. But subsequent rebound to 0.9400 suggests sideways move is seen initially this week and as long as resistance at 0.9433 holds, downside bias remains.
USD/JPY: Failure to penetrate daily resistance at 78.29 suggests US dollar remains in ‘consolidate’ mode. But as long as support area at 77.62/69 holds, upside bias remains and a daily close above resistance at 78.29 would extend gains toward 79.00/10.
EUR/JPY: Yesterday’s narrow movement suggests further range trading is seen after early decline from last week’s high at 102.55 to 101.45. But as long as 102.35 holds, downside bias remains for another fall toward 101.45 later today. Only above 102.55 aborts bearishness prospects.
GOLD: Spot gold marking losses in thin, choppy markets, now down $10.07 at $$1596.88 per ounce. The spot rate has traded between $1594.95 and $1611.25 this morning.
EasyForexNews Research Team