22 January, AtoZForex.com, London – Following a more dovish than expected ECB press conference, the strategy team at Barclays Capital has provided trading strategies for six major currency pairs for traders to acknowledge. The following are Barclays post ECB technical setups for EURUSD, GBPUSD, USDCHF, AUDUSD, NZDUSD, and USDCAD.
Kicking off with the Euro, the outlook for the pair has not changed since yesterday. Barclays prefers to fade bullish upticks and expects the resistance in the 1.1060 area to cap a move lower. “Another break below 1.0805 would encourage our bearish view towards 1.0710 and then lower towards targets near 1.0640 and then the 1.0520 range lows,” Barclays added.
Also see: BNPP short EURUSD trade post-ECB
Moving on to the Pound, the underlying downtrend prevails and Thursday’s inside day signals just a healthy breather within the overall down-move. “Another break below 1.4120 would signal lower towards our targets near 1.4040 and then the 1.3930 area,” Barclays noted.
Barclays remains overall bullish and looks for a move above 1.0125 level to open the next targets near the 1.0330 highs. Support area at 0.9880 is expected to provide buying interest.
Consider reading: Sell USDJPY until Q2 16 to Buy
Turning to commodity currencies, Barclays stays bearish on the Aussie. Wednesday’s small base candle formation keeps the short term range over support near 0.6825 area intact and allows stretched daily studies to unwind. “We would fade upticks towards the 0.7050 area and look for a move below 0.6825 to signal lower towards 0.6770,” Barclays added.
Yesterday’s bullish candle on increased volume hints short term profit taking. “We would fade upticks towards 0.6590 and look for a move lower towards targets near 0.6290 and then 0.6235, the 2015 lows,” Barclays projected.
Finishing Barclays post ECB technical setups with the Loonie, short term corrective weakness could be seen as a healthy development within overall rising trend. “We expect support in the 1.4150 area to keep the focus higher towards the 1.4950 area and then our greater targets towards 1.5325,” Barclays finished.
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