The whole Eurozone is in turmoil, surrounding by uncertainty. Despite of expected positive Eurozone PMI data today. Theresa May's has started her campaign for the next UK PM. Will there be a EUR selloff next week? Learn more from today's, 21 April UOB Daily Forex Trade ideas.
21 April , AtoZForex – These are UOB daily forex trade ideas for 21 April on the five major pairs; AUDUSD, EURUSD, GBPUSD, NZDUSD and USDJPY.
Summary of 21 April UOB Daily Forex Trade ideas
AUDUSD: Increasing risk towards 0.7400– Neutral bias
AUD bounced back yesterday, however, there is continued risk on the downside. With a break of last week's low close to 0.7475 level. A strong daily close below 0.7475 would indicate we are entering into bearish territory, with downside move towards 0.7400 level. UOB added,
“...Only a move above 0.7565/70 would indicate that the downside risk has eased.”
EURUSD: Range bound 1.0635 to 1.0780 – Neutral bias
EUR as expected moved towards the 1.0770 target. Sharp slide back was unexpected. Upside momentum has stalled and now likely to move within a range between 1.0635 to 1.0780 levels. Although bias leans on the bullish side, 1.0775-80 is a strong resistance level. UOB added...
“...and only a clear break of this level would indicate a move towards 1.0825 has started.
Also see: Daily Free Forex Signals
GBPUSD: Overbought, extension to 1.2950 level – Bullish bias
GBP last couple of days upside move has stalled with the consolidation over last couple of days. GBP is in the overbought zone, there is still room for GBP to move towards 1.2950 level. If price moves below the 1.2660 level would mean that there is a temporary top in place. UOB added ...
“....GBP has to move higher within the next 1 to 2 days as a prolonged consolidation would lead to further loss in momentum.”
NZDUSD: Range bound in 0.6940 - 0.7060– Neutral bias
Yesterday's weak daily close supported our outlook of low odds of a further upside move. This confirms that a short term top is in place at 0.7050-55 level. UOB added...
“....NZD has likely moved into a consolidation phase and is expected to trade sideways between 0.6940 and 0.7060 for now.”
USDJPY: Range bound 108.20-109.80 – shift from Bearish to Neutral bias
Yesterday, we pointed out that the bearish movement that started last Wednesday on 12 April at 109.65 appears to be coming to a close, with downside momentum decreasing. The break back above 109.30 would mean that the 108.11 low seen on Monday 17 April is a short term low. Traders should note that it is too early to expect a continued rebound and USD is expected to trade in a range between 108.20 and 109.80. The top side of the range at 109.80 likely to be tested in the near term. UOB added,
“A break above this level would suggest a stronger rebound towards 111.55/60 has started.”
This concludes the 21 April UOB Daily Forex Trade ideas.
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