29 March, AtoZForex, London – United Overseas Bank (UOB) has shared with us technical guidance for currency investors to acknowledge. The following is UOB Forex analysis for EURUSD, USDJPY, GBPUSD, and AUDUSD.
EURUSD: Neutral with increased upside risk
Starting with the Euro, this and last month peaks at 1.1342 and 1.1375 respectively are acting as very strong resistance levels. Yet at the moment it is unclear whether the EUR has enough momentum to break above the two major levels convincingly.
However, “as long as EUR continues to hold above 1.1175/80, the upside pressure will continue to increase in the coming days,” UOB noted. A subdued NFP data on Friday would be enough to propel EURUSD higher.
GBPUSD: Neutral in 1.4050 – 1.4400 range
Despite the sharp Cable rally yesterday, the investment bank is not convinced that the current up-move in GBP is the start of a sustained rally.
“We have been neutral since last Wednesday and expected this pair to trade in a broad 1.4050/1.4400 range. In the space of one week, GBP has touched a low of 1.4056 before rallying strongly to reach 1.4403 during NY session yesterday,” UOB noted.
In other words, the late movement is within the expectation. However, the strong short term upward momentum could not be ignored and UOB will re-evaluate its view upon a sustained move above 1.4400.
As the pairs trades at the upper boundary, a bullish broukout backed fundamentally couldmean a further bullish scope towards 1.4600.
USDJPY: Trades in a broad 111.50 – 113.50 range.
The expected corrective rebound in the Yen has not yet reached its target at 114.00.
However, “the outlook for USD is still viewed as neutral and we expect this pair to trade in a broad 111.50/113.50 range from here,” UOB added.
NZDUSD: Bullish above 0.6900
Finishing UOB Forex analysis, the NZD had rallied sharply yesterday and continued to trade higher today during the opening of the European session. Short term indicators suggest further upward pressure in the coming days.
Moreover, the break above the crucial 0.6900 resistance level suggests a scope higher higher in the coming weeks, UOB noted.
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