Wednesday 24 May UOB Daily Forex Trade ideas- What next for EUR?

Wednesday 24 May UOB Daily Forex Trade ideas ahead of ECB President Draghi’s speech, will his comments be supportive of EUR? What will the FOMC Meeting minutes reveal? Are the two planned rate hikes eventually be just the one? EUR bullish?

24 May, AtoZForex – These are 24 May UOB Daily Forex Trade ideas on the five major pairs; AUDUSD, EURUSD,  GBPUSD, NZDUSD and USDJPY.

Summary of 24 May UOB Daily Forex Trade ideas

AUDUSD: Initial target at 0.7560 –  Shift from Neutral to Bullish bias

AUD outlook since 16 May remains in place, with recovery expected from 0.7330 level. The AUD could extend further towards the 0.7480-85 resistance level. AUD closed strongly yesterday after touching a high of 0.7489 level. The bias for this pair has changed to bullish with initial targets at 0.7560 level. UOB added,

In the order to maintain current momentum, any short-term pull-back should not move below 0.7430.”  

EURUSD:  Extension to 1.1300 not high – Bullish bias

After the comment from the German Chancellor Merkel, stating that the EUR was too weak, the EUR moved to the upside and touched the 1.1263 level.  Upside momentum that commenced last on 17 May indicates possible over extension of price. The target of 1.1300 may not soon and UOB analysts have indicated last Friday taking some of the profits at 1.1170 level. UOB added…

“… those remaining long should adjust the stop-loss higher to 1.1130 from 1.1095 yesterday. Looking further ahead, any break above 1.1300 would shift the focus to 1.1365.”  

Also see: Daily Free Forex Signals

GBPUSD: Range bound 1.2850-1.3050 – Neutral bias (unchanged)

No change in outlook on GBP. Last Friday GBP hit a high of 1.3040 (10pips below the top end of the trading ranging). Although the overall sentiment has improved, it is still early to shift towards a bullish position. UOB added …

“… an intraday move above 1.3050 is not ruled out but GBP has to register a NY close above 1.3085 to indicate the start of a bullish phase..  

NZDUSD: Initial target at 0.7050/55 – Shift from Neutral to Bullish bias

NZD upside price action improved as indicated yesterday and a daily close above the 0.6970 level means a start of a possible move towards the 0.7050/55 level. The bias has shifted to a bullish one, with initial target set at 0.7050/55 level.  UOB added…

“..Based on the rapid acceleration, a move beyond this level would not be surprising and would shift the focus to 0.7090.  

USDJPY: Odds diminished for USD weakness – Bearish bias

USD has been trading sideways for the last two days with downside pressure decreasing. However, unless 111.90 is taken out, possible downside move towards 110.10 cannot be ruled out.  UOB added,

“…the odds for such a move have diminished. Those who are short should consider taking partial profit on any approach near to 110.10.

This concludes the 24 May UOB Daily Forex Trade ideas

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