Japanese Yen Supported By Safe Haven Status -- Asia Daily Forex Outlook

 
   By Trading Central 
 

        SINGAPORE--Following are expected trading ranges and outlooks for nine major currency pairs in Asia today:
        Immediate Range Larger Range
        (Ranges are calculated using recent high and lows and technical analysis - Fibonacci levels, trendlines and moving averages.)
        USD/JPY Intraday: Bias remains bullish. Currently at 96.592, the US dollar index is holding firm after rebounding from a 2-week low of 96.288 seen on Monday, as traders are watching closely if the US Federal Reserve gives any hints on interest rate direction at the FOMC to be concluded at early hours on Thursday Asian times. Having rebounded from level just below 123.00 seen on Monday, USD/JPY maintains its bullish bias trading above both the 20- and 50-period intraday moving averages. The intraday RSI is mixed around the neutrality level of 50 lacking downward momentum. As long as 123.30 holds as the key support, the first upside target is set at 123.85pair (around the high of July 27) and the second at 124.15 (seen on July 23). Alternatively, a break below 123.30 could trigger a decline toward 123.00.
        EUR/USD Intraday: Key resistance at 1.1085. The pair is posting a technical rebound after falling to 1.1019 overnight. Meanwhile the 20-period intraday MA is below the 50-period one. As long as the key resistance at 1.1085 is not surpassed, the pair is likely to decline to the first downside target at 1.0995 (a base seen on July 27) and to the horizontal level of 1.0960 in extension. Alternatively, a break above 1.1085 could call for a bounce toward 1.1130 (around the high of July 27).
        AUD/USD Intraday: Turning up. The pair has broken above its previous key resistance at 0.7340 and is now supported by a rising trend line. The 20-period intraday MA is rising and staying above the 50-period one (also rising). Meanwhile the intraday RSI remains within the buying area between 50 and 70 and is riding on a bullish trend line. With key support at 0.7290, the pair is expected to take the upside targets at 0.7355 (seen on July 24) and 0.7380 (seen on July 23). Alternatively, a break below 0.7290 could trigger a fall toward the recent low at 0.7255.
        NZD/USD Intraday: Upside prevails. The pair is trading above its rising 20-period and 50-period intraday MAs. A support base has formed around 0.6650, which should limit any downside potential. In addition, the intraday RSI is above its neutrality level at 50. The bias remains bullish. As long as 0.6650 holds as the key support, look for further upside to 0.6740 first. A break above of this level would call for further advance to 0.6770. Alternatively, a break below 0.6650 would turn the intraday outlook to negative and call for a drop to 0.6625 and even 0.6595 in extension.
        GBP/USD Intraday: Further upside expected. The pair is supported by a rising trend line (since July 24, 2015), which confirms a positive outlook. In addition, the 20-period and 50-period intraday MAs are rising and providing support to the pair. Also, the intraday RSI is above its neutrality level at 50 and lacks downward momentum. Above 1.5570, the pair is likely to break above its nearest target at 1.5625 with next upside target at 1.5670. A break below of 1.5570 would open a downward path to 1.5535 and even 1.5495 in extension.
        USD/CHF Intraday: Bullish bias above 0.9585. The pair is consolidating below its 20-period and 50-period intraday MAs. The intraday RSI is below its neutrality area at 50%. Nevertheless, a support base has formed around 0.9585, which should limit the downside potential. Even though a continuation of the consolidation cannot be ruled out, its extent should be limited. As long as the key support at 0.9585 is not broken, look for a technical rebound to 0.9635 and even 0.9675 in extension. Below 0.9585, look for further downside with 0.9545 & 0.9525.
        USD/CAD Intraday: Downside prevails. The pair has accelerated to the downside after breaking down its previous support at 1.2995, which should now play a resistance role. Both descending 20-period and 50-period intraday MAs maintain a bearish bias. Moreover, the intraday RSI stays below 50 and lacks upward momentum. A first target to the downside is set at yesterday's low at 1.2905. A break below this level would open the way to further weakness towards 1.2880 and 1.2810 as possible. Alternatively, a break above the key resistance at 1.2995 would call for further upside towards 1.3050 at first and then to July 24 top at 1.3095 in extension.
        EUR/JPY Intraday: Upside prevails. The pair stays above its key support at 136.10 and is moving sideways. The intraday RSI stands above 50 and is well directed. Further upside is therefore expected with the next horizontal resistances and overlaps set at 137.10 (the high of July 27) and then at 137.60 in extension. Only a break below the key support at 136.10 would open the way to further weakness towards July 24 bottom at 135.45 at first. A second alternative target is set at 134.95 (the low of July 22).
        EUR/GBP Intraday: Under pressure. The pair is reversing downwards after breaking below its 50-period intraday MA, and remains under pressure below its key resistance at 0.7125. The intraday RSI is around 50. Even though a continuation of the technical rebound cannot be ruled out, its extent should be limited. A first target to the downside is set at the horizontal level at 0.7060. A break below this level would open the way to further weakness towards 0.7040 and 0.7015 as possible. Alternatively, a break above the key resistance at 0.7125 would call for further upside towards at 0.7160 (the high of July 27) at first and then to 0.7185 in extension.
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        (END) Dow Jones Newswires

        July 28, 2015 21:36 ET (01:36 GMT)

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