The euro is still on the back foot and the yen is healing the hurts, at least some of it… EURUSD looks staged to recheck a short-term Fibo retracement grid below, starting at 1.3250. Resistance likely in the mid-1.33s… EURJPY added a “Bearish engulfing candle” yesterday and time spent below 116.85 would set 115.55/20 as the next objective below… GBPUSD is mounting power for another sub-1.60 test and if making it this time the Nov’12 low of 1.5828 would start becoming exposed… EURSEK is pushing deeper into resistance, but above 8.71 is needed to get the Dec’12 peak back in sight. Below the mid-8.60s is not wanted to maintain a cautious bullish bias… USDSEK also looks set to test additional resistance above, and over 6.52 would expose a recent peak at 6.5930. Support at 6.47… GBPSEK added a bullish print yesterday and moved into resistance. Also above 10.47 would lift the bar to 10.56\57… EURNOK also posted a bullish print yesterday and 7.4320\7.4535\7.4740 is a valid target zone while holding above 7.3875… NOKSEK is pressed lower in all this and below 1.1605 would move crosshairs to 1.1550/35… Gold has confirmed a short-term bullish divergence, suggesting advance through $1705… In the EM space we highlight ZAR weakness with USDZAR now targeting the Nov’12 9.01 peak… In EURHUF there should be bids shoring up losses not far below and prompt for advance to and above 298.30, but in EURPLN there is tough resistance around 4.12\13 not easily given up… Both US & German 10y tenors look healthy, now targeting key levels at 133-02 & 143.80 in the front contracts… The front S&P contract is also bullishly poised for the day ahead with some focus at a 1477\95 target area… Finally the front Brent crude contract remains in a bearish gear, now threatening the next downside ref at $108.90 (and levels below).
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SEB tech team