United Overseas Bank (UOB) has shared its Forex trade ideas for the week for currency investors to acknowledge and increase their number of positions and profitability.
22 August, AtoZForex – The following is UOB Forex trade ideas for the week of August 22nd to 26th for EURUSD, GBPUSD, USDJPY, AUDUSD, and NZDUSD currency pairs.
EURUSD: Partial profit at current level – Bullish
The bearish closing last Friday suggests that the probability for a move towards 1.1430 has diminished. Those who are long on the pair should look to book partial profit around the current levels.
“A move below 1.1240 would indicate that a short-term top is in place (and the start of deeper pull-back to 1.1190),” UOB added.
USDJPY: Diminished odds for further weakness – Bearish
While the USDJPY stop-loss for the current bearish trade idea is still intact at 101.20, the strong rebound last week and the bullish opening this morning indicates lower odds for further weakness in the Yen.
“Unless USD can move and stay below 100.00 within these couple of days, a break above 101.20 would not be surprising,” UOB noted.
GBPUSD: Short-term top; weakness towards 1.2980 – Neutral
The cable fell sharply after making a new high of 1.3186 last Friday. While the Forex trade idea for this pair is still viewed as neutral, the bearish daily close suggests that a short term top is in place and the current GBP weakness has room to extend lower to 1.2940. At this point, however, a sustained drop below the level is not expected.
Overall, “GBP is expected to remain under pressure in the next several days unless it can move and stay above the 1.3186 high,” UOB added.
AUDUSD: Room to extend lower to 0.7545/50 – Neutral
The projected correction in AUDUSD has been more rapid than anticipated and further extension to 0.7545/50 support would not be surprising. A clear break below this level would confirm that the current neutral outlook has turned to bearish.
“The downward pressure would continue to increase unless AUD can move and stay above 0.7660 within these 1 to 2 days,” UOB clarified.
NZDUSD: In a 0.7170/0.7350 range – Neutral
Finishing UOB Forex trade ideas for the week with NZDUSD, the pair traded in a calm manner last Friday and at this point, UOB has no reason to expect the current neutral phase and trade idea to end.
Meaning, “further range trading between 0.7170 and 0.7350 is still expected,” UOB added.
Also see: Morgan Stanley weekly G4 Forex outlook
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