10 January UOB Forex Trade ideas ahead of the UK Manufacturing Productions data. After GBP drop of over 140pips , is this the start of the move towards parity in 2017 against the USD? Will GBP recover some of it’s losses from yesterday? Bearish GBP?
10 January AtoZForex – These are UOB forex trade ideas for 10 of January on the five major pairs; AUDUSD, EURUSD, GBPUSD, NZDUSD and USDJPY.
10 January UOB Forex Trade ideas
AUDUSD: Initial target at 0.7430, then 0.7525 – Shift from Neutral to Bullish bias
AUD made a clear break above the 0.7350-55 area shifting bias towards the bullish phase. Initial target would be 0.7430 and then towards 0.7525. For continued bullish momentum , price must not pull back below 0.7250. UOB added,
“any pull-back should not move back below 0.7250 even though 0.7285 is already a strong short term support.”
EURUSD: Range bound between 1.0420-1.0620 – Neutral bias (unchanged)
The pair reached 1.0615 just falling short of the top side range of 1.0420-1.0620. Wait for a clear break above the 1.0650-70 area before shifting to a bullish position. UOB added,
“overall, EUR is expected to stay underpinned in the next couple of days with solid support at 1.0480.”
Also see: Daily Free Forex Signals
GBPUSD: Support at 1.2085-90 – Shift from Neutral to bearish bias
Cable slid taking several support levels out. With current bearish bias, expect strong support at the 1.2085-90 level. This is a key level, already tested two times after the October 2016 flash crash. To maintain current downside move, any pull back must not break above 1.2290 level, even with the near term resistance level of 1.2250. Next key level to watch for is the 1.2000 level. UOB added,
“the reward to risk ratio to sell at current level (and the potential downside) is not as attractive as GBPSGD.”
NZDUSD: Range bound 0.6920- 0.7055 – Neutral bias
NZD move to the upside has improved, however a move above 0.7055 strong resistance level is not expect soon. UOB added,
“overall, we prefer to hold a neutral stance for now even though the short-term bias is tilted to the upside (as long as 0.6950 is intact).”
USDJPY: Back in a range 115.50-118.60 – Neutral bias
After the USD hit 117.52 level, it slid, with short term risk shifting to the downside. Unclear at this stage to expected a continued move to the downside. UOB added,
“that said, a move below last week’s 105.00/05 would not be surprising and such a development would indicate a deeper probe towards the major 114.00 support has started.”
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