7 December UOB Forex Trade ideas ahead of RBNZ Governor Wheeler’s speaking for the second time this week. Overnight poor GDP economic data from Australia, will UK manufacturing data follow this morning? Is the EUR rally short-lived?
7 December, AtoZForex – These are 7 December UOB trade ideas for traders on the five major pairs; AUDUSD, EURUSD, GBPUSD, NZDUSD and USDJPY.
7 December UOB Forex Trade ideas
AUDUSD: Range bound 0.7300-0.7500 – Neutral bias (no change in view)
AUD outlook remains unchanged,, with very little to add. AUD seems to be plodding along, even though short term upside move has improved. The recent move is still considered part of a neutral sideways range commenced a fortnight ago. UOB added:
“… we continue to expect range trading, likely within a 0.7350/0.7550 range.”
EURUSD: Further upside move to 1.0850 possible – Neutral bias
EUR bounced back off the high of 1.0785 yesterday, the underlying tone is on the positive side. The EUR has the possibility to move higher to the 1.0850 resistance level. UOB added…
“…Overall, EUR is expected to stay supportive unless there is a move back below 1.0640.”
Also see: Daily Free Forex Signals
GBPUSD: Partial profits taken at 1.2770, GBP strength waning – Bullish bias
GBP partial profits target of 1.2770 was reached yesterday after price reached 1.2775 level. The odds of a possible move higher to the 1.2865 level appears to be low. of a further UOB added …
“… confirmation of a short-term top is only upon a move below 1.2630 (a breach of this level would indicate the start of a consolidation phase).”
NZDUSD: Higher Range level 0.7020- 0.7200– Neutral bias (unchanged)
NZD analysis similar to the AUDUSD. NZD outlook remains unchanged, even though short term upside move has improved. The neutral sideways range remains in place. UOB’s view remains unchanged…
“… the neutral consolidation phase is still intact even though this pair is expected to trade at a higher 0.7050/0.7200 range instead of the 0.7000/0.7050 expected previously.”
USDJPY: Deeper pull back anticipated, within the trading range 111.50 – 115.60 – Neutral bias
USD appears to be struggling after the US election result and further move to the upside seem to be slim. Daily MACD is moving below the neutral level, indicating of a possible deeper pull-back. A bearish move at this stage is not expected to be “major” one. The short term view is leaning towards the downside, with price finding a strong support at 115.60 level. On the bullish side, the 115.00 level is still a major resistance level. UOB added ….
“… while a move above this level would not be surprising further out, this level is likely strong enough to cap temporarily for the next one week or so.”
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