USD Cushioned by Economic Data -- Asia Daily Forex Outlook

        The following are projected trading ranges and outlooks for nine secondary currency pairs in Asia today:
        (Ranges are calculated using recent highs and lows, information on the placement of option strikes, and technical analysis--Bollinger Bands, Fibonacci levels, trendlines and moving averages.)
        USD/CNH Intraday: Under pressure. Overnight the US dollar dropped against most major currencies before locating downside support provided by better-than-expected economic data. Jobless claims in the week ended June 13 amounted to 267K (vs 276K expected), Philadelphia Fed general business activity index jumped to 15.2 in June (vs 8.0 expected) from 6.7 in May, while US CPI grew 0.4% MoM in May (vs +0.5% expected). For the USD/CNH pair, 6.2075 continues to act as the key resistance checking the pair's upside repeatedly. While a technical rebound is in progress, its extent is expected to be limited. We suggest SHORT positions below 6.2075 with targets @ 6.1995 & 6.198 in extension. Above 6.2075 look for further upside with 6.2105 & 6.213 as targets.
        USD/TWD Intraday: Downside prevails. The pair keeps trading on the downside lacking upward momentum. Prices are below both the 20- and 50-period intraday MAs and around the lower Bollinger Band. Furthermore, the intraday RSI stays below the neutrality level of 50. The bearish outlook persists. We suggest SHORT positions below 31.15 with targets @ 30.6 & 30.5 in extension. Above 31.15 look for further upside with 31.4 & 31.55 as targets.
        USD/KRW Intraday: Downside prevails. The pair is pulled by strong downside momentum. Prices, capped by the 20-period intraday MA, keeps trading around the lower Bollinger Band. And the RSI has broken below the oversold level of 30 showing no bullish divergence. The outlook remains bearish. We suggest SHORT positions below 1110 with targets @ 1098 & 1095 in extension. Above 1110 look for a bounce toward 1114 & 1120.
        USD/SGD Intraday: Under pressure. The pair remains in a bearish trend following the recent downside breakout of 1.341 (a key horizontal level). The intraday RSI lacks strong upward momentum, and the 50 MA remains negatively oriented. Therefore, as long as the resistance at 1.337 is not surpassed, the risk of the break below 1.328 remains high. We suggest SHORT positions below 1.337 with targets @ 1.328 & 1.324 in extension. Alternatively, only the upside penetration of 1.337 would call for a new recovery to 1.341 & 1.345 as targets.
        USD/MYR intraday: Turning down. Technically, the pair has clearly reversed down after the break down its key horizontal level at 3.7195. The previous key support now acts as a resistance role, which should limit any upside potential. Besides, the RSI is trading below 30. The MACD is negative and below its signal line. Moreover, the pair stands below its 20 and 50 MAs (respectively at 3.7452 and 3.7449). Finally, the USD/MYR is trading below its lower Bollinger band (standing at 3.7094). We suggest SHORT positions with downside targets @ 3.6865 and 3.6810. Alternatively, above 3.7195, look for 3.729 and 3.7345.
        USD/THB intraday: Downside prevails. The pair is still under pressure below its nearest resistance at 33.704, and seems likely to post a new decline towards 33.523. Besides, the configuration is negative, as the RSI is below 50, and the MACD is below its signal line and negative. Moreover, the pair is trading under both its 20 and 50 MAs (respectively at 33.6555 and 33.6798). In which case, the downside prevails as long as 33.704 is resistance. Alternatively, above 33.704, look for 33.747 and 33.771.
        USD/PHP intraday: Consolidation. The pair has broken down its previous support and is expected to post further consolidation in the coming sessions. The pair now stands below its 20 and 50 MAs (respectively at 45.161 and 45.0282). Meanwhile, a downside penetration of its lower Bollinger Band could signal a bearish acceleration. Moreover, the intraday RSI has broken down its 30 level, calling for further consolidation as possible. To sum up, as long as the resistance at 45.11 is not penetrated, target 44.766 on the downside at first. Alternatively, only an upside breakout of 45.11 would call for a retest of 45.169 and 45.205 in extension.
        USD/IDR intraday: Under pressure. The pair has broken down its 20 and 50 MAs (respectively at 13337.0815 and 13311.701), and remains under pressure below its resistance at 13344. The immediate trend is down and the momentum is strong. The configuration becomes negative now: the intraday RSI is below its neutrality area at 50, and the MACD stands below its signal line. Further downside is expected if the MACD should penetrate its zero line. As long as 13344 acts as the resistance, we target 13251 and 13229 on the downside. A stand above the key resistance at 13344 would open the path towards 13364 and 13375 on the upside.
        USD/INR Intraday: Turning down. The pair gapped lower and has just dropped below its rising trend line support, calling for a trend reversal. The immediate trend is down and the momentum is strong, as the intraday RSI has broken down its 30 level. Meanwhile, both descending 20 and 50 MAs now maintain a bearish bias. As long as the upper boundary of the bearish gap at 64.1 serves as the key resistance level, the pair is likely to drop towards its previous low at 63.6 and then to the next horizontal support at 63.45 as possible. Only an upside fill of the bearish gap and a penetration of its resistance at 64.1 would invalidate our bearish opinion and call for further upside with 64.3 and 64.5 as targets.
        TRADING Central (www.tradingcentral.com) is a commentary service specializing in technical analysis.
        (The information contained in this publication is not intended as an offer or solicitation for the purchase or sale of any financial instrument. Any opinion offered herein reflects TRADING Central current judgment and may change without notice. Users acknowledge and agree to the fact that, by its very nature, any investment in shares, stock options and similar and assimilated products is characterized by a certain degree of uncertainty and that, consequently, any investment of this nature involves risks for which the user is solely responsible and liable. This is a financial news and information service. It is provided in general terms and does not take account of or address any individual user's position. To the extent that this article includes suggestions as to various possible investment strategies which users might consider, it does so in only general terms without reference to the personal factors which should determine any user's investment decisions. Nothing contained in this service constitutes personalized investment advice. Dow Jones does not warrant the accuracy, completeness or timeliness of the information in this article, and any errors shall not be made the basis for any claim against Dow Jones. The author does not invest in the instruments or markets cited in this article. This article does not constitute or form part of any invitation or inducement to buy or sell any security.)
        (END) Dow Jones Newswires

        June 18, 2015 22:22 ET (02:22 GMT)

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