08/02 Barclays technical setups: Lunar New Year


05 February, AtoZForex.com, London – As we start the week with the Lunar New Year, the strategy team at Barclays Capital has provided trading guidance for six major currency pairs. The following are 08/02 Barclays technical setups for EURUSD, USDJPY, GBPUSD, AUDUSD, NZDUSD, and USDCAD for currency investors to consider.

EURUSD

Kicking off with the Euro, Barclays remains neutral on the pair for now and expect any further gains to be capped by a renewed selling interest near resistance in the 1.1260/90 field.

Overall, the greater range highs near 1.1500 psychological resistance helps to keep the view bearish. Although, Bank of America expects EURUSD to reach 1.17 area. Below 1.1060 level would hint an end to the corrective bullish bounce.

USDJPY

Moving on, Barclays’ bearish view for the Yen was encouraged by a break below support in the 118.85 area. “We are now looking for further downside towards targets near 115.95 and then 115.65,” Barclays added. Ahead of the pair reaching the bearish targets, BNP Paribas is already looking for renewed upside USDJPY targets.

GBPUSD

Thursday’s topping candle formation and Friday’s bearish confirmation has encouraged Barclays to reestablish its bearish view on the Cable. Now the pair points towards initial targets near 1.4410 level and then the 1.4150 area.

Consider reading: Lunar New Year USD effects

AUDUSD

For the Aussie, Barclays is looking for signs of a top to reestablish its overall bearish view. “Our preference is to fade upticks against the 0.7385 greater range highs. A move below 0.7060 would encourage us to turn more bearish,” Barclays explained.

NZDUSD

Short term risk arose for a squeeze higher in the Kiwi towards a resistance level near 0.6770 before sellers return. Like the Aussie, “we are looking for signs of a top to reestablish a bearish view,” Barclays noted, adding that “the 0.6900 range highs (close to 52 week moving average) help keep our greater view bearish.”

USDCAD

Finishing 08/02 Barclays technical setups with the Loonie, base candle formation signals a potential end to the recent corrective wave. In addition, Friday’s bullish close has confirm the base thus encouraging Barclays “to turn bullish towards targets near 1.4105 and then 1.4175.”

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