United Overseas Bank (UOB) has shared its Forex trade ideas into FOMC meeting for traders to acknowledge, so you could benefit from this technical analysis of a major investment bank.
17 August, AtoZForex – The following are Forex trade ideas into FOMC for EURUSD, GBPUSD, AUDUSD, and NZDUSD currency pairs.
EURUSD: Targeting 1.1350 and 1.1430/35, from neutral to – Bullish
UOB has highlighted the increasing risk of a higher EUR in recent trade ideas for Forex and the clear break of 1.1250 yesterday confirmed the start of a bullish phase.
“The immediate target is for a move to 1.1350 and based on the current impulsive momentum, further extension to the 1.1430/35 high seen on the day of Brexit would not be surprising,” UOB projected.
Strong support level falls on 1.1220 but only a break below 1.1170 would warn that UOB’s bullish idea is wrong.
GBPUSD: Scope higher towards 1.3170, from bearish to – Neutral
Although the bank noted about the fading downward momentum of GBPUSD in previous update and advised taking partial profit at 1.2850, UOB did not expect the sudden rally yesterday following a deviation between UK’s and US’ CPI data.
The trade idea for GBPUSD has shifted to neutral and the bank views the current movement as a corrective recovery which appears to have room to extend higher to 1.3170. At this point, a move above the level is not expected.
Overall, “this pair is expected to stay supported in the next several days and any short-term pull-back is expected to encounter solid support at 1.2920,” UOB added.
AUDUSD: In a 0.7595/0.7760 range – Neutral
AUDUSD broke the 0.7725 resistance yesterday. However, the move was short lived and the rapid rebound from the top encouraged UOB’s current neutral trade idea for the pair.
That said, “the increased volatility suggests a wider consolidation range of 0.7595/0.7760 instead of the 0.7595/0.7725 expected previously,” UOB noted.
NZDUSD: In a 0.7120/0.7350 range – Neutral
Finishing today’s Forex trade ideas into FOMC, UOB has turned neutral on NZDUSD yesterday. While upwards momentum has improved, the bank is not convinced that the strong and sudden bounce seen yesterday can move above last week’s 0.7350 high.
From here, “we prefer to continue to hold a neutral view but expect a higher 0.7170/0.7350 consolidation range,” UOB finished.
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