Technical Analysis
Daily Market Technicals
EUR/USD: Studies Stretched/Neutral As Boll Bands Widen. The pair broke above the daily Bollinger band top, yesterday, but now trades back within. Daily tech studies suggest the pair is overbought,
Asian Currencies Technicals
AUD/USD: Potential For $1.0290-1.0310 In The Short Term. Fresh two week lows for the AUD/USD again overnight combined with the failure at the Nov 30 highs and correcting overbought slow stochastics increase the risk of a move lower that initially sees the $1.0290-10 region retested.
FX Daily Crosses
Today’s highlights: – EUR/GBP: Advance continues higher for key neckline resistance at .8166. A break through here is eventually expected allowing for an advance higher to .8221 and then .8263.
FX Daily Majors
Today’s highlights: – EURUSD: Probing key neckline resistance and the 78.6% retracement hurdle at 1.3050/63. We expect this area to cap the market, with risk back to 1.2880.
Technical Analysis
The common ccy, equities, commodities and bonds all ended last week on a positive footing so we’re entering the current one with risk appetite on.
Daily Market Technicals
EUR/USD: Approaching Fibonacci Resistance At $1.3052. Break above $1.3027 Fibonacci level, 76.4% of $1.3140-$1.2662 now favours move to $1.3052, which is the 76.4% of $1.3172-$1.2662move and $1.3058, as current level of Bollinger band top.
Asian Currencies Technicals
AUD/USD: Marginally Dips Below 21-DMA. The AUD/USD ended last week looking a little soft after 4 consecutive lower daily lows but the pair needs to close below the 21-DMA to see initial focus turn to the 200-DMA and overall focus turn to Oct monthly lows.
USD/JPY – bull-flag completes; focus now neckline at 83.13
The bull-flag we have been tracking is now complete as $JPY rallied through resistance at 82.15. Now the 2010/12 H&S Bottom neckline is in sight at 83.13.
FX Daily Crosses
Today’s highlights: – EUR/GBP: Lacklustre prod above .8114 prior resistance. The focus remains broadly higher for a test of the .8166 key neckline resistance hurdle. Above here sees .8221/63.
FX Daily Majors
Today’s highlights: – EURUSD: Removal of 1.3010 resistance implies a continuation higher towards 1.3140/72 resistance but we look for this to cap and for the range bound tone to continue.
Global Technical Watch – More expansive improvement
As risk sentiment continues to improve, some of the lagging currencies, such as the INR, have turned a corner.
Technical Analysis
Risk appetite remain firm (equities, bonds and commodities all doing fine). Multiple signs of a possible EURUSD & EURJPY peak coming hours/day, SEK & NOK continued and will continue to weaken.