UOB technical Forex analysis


30 June, AtoZForex For the benefit of traders, United Overseas Bank (UOB) has shared its technical Forex analysis.

UOB technical Forex analysis

The following is technical outlook for EURUSD, GBPUSD, AUDUSD, NZDUSD, and USDJPY currency pairs.

EURUSD: Scope lower but 1.0820 – Bearish

While the correction from Friday’s 1.0909 low has been resilient, there is no change to the bearish UOB outlook for EURUSD.

“The current price action is viewed as a corrective rebound and as long as 1.0210 is not taken out, a move to 1.0820 cannot be ruled out just yet,” the bank added.

USDJPY: In a 100.00/105.00 range – Neutral

Near term USDJPY outlook is still unclear after the outsized range post Brexit. For now, “it seems that 100.00/105.00 should be enough to contain the short-term market volatility for the next several day,” UOB added.

GBPUSD: 1.3000 would not surprise – Bearish

This short term GBP strength can be seen as just a corrective rebound and it is too early to expect a sustained recovery. Markets are expected to remain volatile, yet GBPUSD should not move higher than the UOB’ stop loss level for its bearish view at 1.3785. This level will be revised if volatility subsides.

“Target remains unchanged at 1.3000 even though Monday’s low of 1.3120/25 is acting as a strong intermediate support,” UOB added.

AUDUSD: Choppy between 0.7305/0.7510 – Neutral

Aussie rebounds fast from the 0.7325 Monday low. While the bullish rally appears to have scope to extend higher and test 0.7510 resistance level, a clear break above is not expected.

Therefore, “we are holding on to our neutral view for now and expect AUD to continue to trade choppily within a 0.7305/0.7510 range,” UOB added.

NZDUSD: In a 0.6975/0.7170 range – Neutral

Finishing UOB technical Forex analysis, NZDUSD fell to the major 0.6975 support on Monday and rebounded sharply. The up-move can be seen as part of a broader consolidation, not the beginning of a sustained rally. Nonetheless, a test of 0.7170 would not be surprising.

Overall, “we continue to hold a neutral view and expect further range trading between 0.6975/0.7170,” Finished.

Also see: 10 things you must know before trading today

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