Barclays technical ECB setups

21 January,, London – The strategy team at Barclays Capital has provided trading strategies for six major currency pairs for traders to acknowledge before the ECB Press Conference scheduled at 13:30 GMT. The following are Barclays technical ECB setups for EURUSD, USDCHF, GBPUSD, EURGBP, AUDUSD, and NZDUSD.


Beginning with the Euro, Barclays prefers to fade upticks and looks for a resistance in the 1.1060 area to cap any bullish rallies for a move lower. “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 projected.


Moving on, the outlook for USDCHF is overall bullish thus Barclays looks for a move above 1.0125 resistance to open the next targets near the 1.0330 highs. “Support near 0.9880 is expected to provide buying interest on dips,” Barclays added.


For massively devalued Pound, Tuesday’s break below 1.4225 support endorses the strategy team’s further bearish view. “We are looking for further downside towards initial targets near 1.4040 and then the 1.3930 area,” Barclays projected.

Consider reading: Bank of America: Trading the ECB


The break above the range highs near psychological area at 0.7500 has triggered a multi-month basing pattern on the EUR and GBP cross. Therefore, Barclays was forced to shift to a more bullish view in the near term. Initial targets are in the 0.7840 zone.


Moving on to commodity currencies, recent consolidation in the Aussie is seen as a breather within the context of the underlying bearish trend. “We are looking for a move below 0.6825 to signal lower towards our targets near support in the 0.6770 area,” Barclays projected.


Finishing Barclays technical ECB setups, the Kiwi has not change since Wednesday. “We are bearish and look for further downside towards targets near 0.6290 and then 0.6235, the 2015 lows,” Barclays finished.

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