UOB Forex market analysis

19 April, AtoZForex, London – United Overseas Bank (UOB) has shared with us its technical guidance for currency investors to acknowledge.

UOB Forex market analysis

The following is UOB Forex market analysis for EURUSD, USDJPY, GBPUSD, AUDUSD, and NZDUSD major currency pairs.

EURUSD: Downside limited to 1.1145 – Bearish

The bearish Euro outlook has not changed, but downward momentum is relatively weak and therefore the downside potential is likely limited to 1.1145. Stop-loss level remains unchanged at 1.1395 since 1.1350 is a strong short term resistance.

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Looking further ahead, “this pair has to move below the strong 1.1230 support within the next few days as a prolonged consolidation above this level would lead to a rapid loss of momentum,” UOB added.

USDJPY: In broad 107.65/110.00 range – Neutral

Only a daily close below 107.50 resistance would indicate that USDJPY has resumed its bearish trend.

The unexpected rebound from 107.81 yesterday indicates that the downward momentum has eased and this pair is expected to trade in a broad 107.65/110.00 range for now.

GBPUSD: In broad 1.4000/1.4350 range – Neutral

Improving short term momentum implies that a test of 1.4000/1.4350 area will not be surprising.

However, “the overall outlook is mixed and even a break above 1.4350 is not expected to move significantly above the late March high of 1.4455/60,” UOB noted, adding “yesterday’s low of 1.4130/35 is acting as a strong support and this level should hold, at least for the next few days.”

AUDUSD: Targeting 0.7850 – Bullish

The rally from 0.7594 during early Sydney time is accompanied by impulsive upward momentum and this coupled with the break above the key 0.7765 resistance level suggests that the outlook for the Aussie has shifted to bullish. The initial target is placed at 0.7850, the peak seen in June last year.

“In order to maintain the current impulsive momentum, any pull-back should hold above 0.7660,” UOB added

NZDUSD: Above 0.7000 is bullish – Neutral

The unexpected rally clearly bodes well for the Kiwi but UOB prefers to play it safe and wait for a daily closing above 0.7000 to confirm its bullish NZDUSD outlook.

“This appears to be a likely scenario unless there is a move back below 0.6870 in the next 1 to 2 days,” The investment bank finished the UOB Forex market analysis.

Also see: Weekly outlook for USD, EUR, JPY, GBP

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