EUR/USD – settles for the time being between $1.2760/70, after recovery earlier touched a high at $1.2775. Several traders have mentioned interest to go short on approach to $1.2780, with one major investment bank adding that they see the area between $1.2770/1.2800 as the area they will add to shorts. Further resistance seen in the area between $1.2808/13 (Friday highs NY/Europe) with stops mixed in between $1.2810/15, more above $1.
EUR/GBP – extended to stg0.82705 but seen easing back as EUR/USD begins to pull away from its recovery high at $1.2775. Cross support now seen at stg0.8240 ahead of stg0.8225/20. Strong resistance noted into stg0.8285, the 2011 high.
EUR/JPY – the cross is currently Y98.14, off recent session highs Y98.24 with trade volumes seen light. Supply seen into Y98.40/45 (Y98.45 – 5 Jan prev low), through here opens technicals and the 5 DMA at Y98.70. The European low provides support on the downside at Y97.83, a break to the Asian and fresh 11 year lows of Y97.28.
AUD/USD – rate stalled at the Asian high $1.0230, running into supply and easing to $1.0206 in current dealings. A break here opens $1.0240/45 ($1.0244 – 6 Jan intraday high). Support seen around the 100 DMA at $1.0187, ahead of the European low $1.0181, a break opens a deeper move towards strong demand at $1.0130/25 ($1.0128 – 30 Dec low).
AUD/NZD – extends losses to NZ$1.3020 and a clean break of the recent trading range. The 55 DMA (NZ$1.3117) has now been breached and one trader notes this has been pivotal in the past and could signal further pressure on the downside. Demand seen into NZ$1.3000, a break opens a deeper move towards NZ$1.2950.
EasyForexNews Research Team