Near-term signals favour further USD strength as the US dollar index is emerging above two-month channel highs. While EUR/GBP posted a Bearish Reversal Day against its 200-day average (resistance), EUR/USD is threatening to retest and potentially overthrow its 200-day average (current support). With the S&P 500 continuing to trade in a bearish manner following the unfavorable close noted for Friday, the JPY is benefiting: EUR/JPY is threatening to stage a deeper pullback and weakness in AUD/JPY is ongoing as important levels are slowly giving way. However, despite the near-term pullback in US equities, strong topping patterns are lacking and we view recent weakness as temporary.
Click here to read the full report: Technical Research
Barclays Capital