US Dollar Bounces From Low -- Asia Daily Forex Outlook

 
   By Trading Central 
 

        Following are expected trading ranges and outlooks for nine major currency pairs in Asia today:
        (Ranges are calculated using recent high and lows, information on the placement of option strikes, and technical analysis - Fibonacci levels, trendlines and moving averages.)
        USD/JPY Intraday: Bias remains bullish. Overnight the US dollar rebounded from its latest consolidation. USD/JPY is trading on the upside keeping strong upward momentum. Meanwhile the 20-period intraday moving average has crossed above the 50-period one and the intraday RSI stays within the buying area of 50-70. Further upside is expected as long as 123.55 holds as the key support. The first upside target is set at the horizontal resistance of 124.25, followed by 124.50. Alternatively, a break below 123.55 could call for further decline to 123.35.
        EUR/USD Intraday: Key resistance at 1.0965. The pair is rebounding from its previous intraday low of 1.0870 while trading below the key resistance (previous intraday high) at 1.0965. The 20-period intraday MA is still below the 50-period one. Choppy price action with a bearish bias is expected. As long as the key resistance is not surpassed, the pair could return to 1.0870 on the downside and 1.0810 (the low of the recent down move) in extension. Alternatively, above 1.0965, look for further upside with 1.0985 & 1.1035 as targets.
        AUD/USD Intraday: Under pressure. The pair maintains its downward momentum trading below the 20-period intraday MA, which stays below the 50-period one. The intraday RSI remains within the selling area of 50-30 lacking upward momentum. As long as 0.7410 holds as the key resistance, the pair is expected to return to 0.7345 (seen on July 21) and 0.7325 (seen on July 20). Alternatively, a break above the key resistance could call for a bounce toward 0.7430 (seen on July 22) and 0.7450 (seen on July 21).
        NZD/USD Intraday: Key resistance at 0.6650. As expected, New Zealand's central bank cut its official cash rate by 25 basis points to 3.00% this morning. NZD/USD has pulled back from a strong rebound and remains under pressure below its key level at 0.6650. The upward potential is likely to be limited by the resistance at 0.6650. Besides, the intraday RSI is losing upward momentum. Therefore, as long as 0.6650 is not surpassed, look for a return to 0.6555 on the downside at first, and then to 0.6535 in extension. Alternatively, above 0.6650 could trigger further upside with 0.6670 & 0.6700 as targets.
        GBP/USD Intraday: Upside prevails. The minutes of the Bank of England's last meeting revealed that policymakers are increasingly inclined towards raising interest rates. GBP/USD is posting a technical rebound, and seems likely to challenge its nearest resistance at 1.5640 in sight. Both the 20- and 50-period intraday MAs are turning up, which should support a positive outlook on an intraday basis. Furthermore, the intraday RSI indicator is within the buying area of 50-70. Therefore, as long as 1.5550 (a horizontal level) holds as the key support, further advance is on the cards towards July 17's high of 1.5675.
        USD/CHF Intraday: Bias remains bullish. A strong support base has been formed around 0.9560, which calls for a short-term stabilisation. The pair is expected to hold above this threshold, as the technical indicators favor a new rebound to 0.9625, and 0.9650 (July 20 & 21's top). Last but not least, the intraday RSI indicator lacks downward momentum. Even though a continuation of the current consolidation cannot be ruled out, its extent should be limited before a new bounce to 0.9650. Alternatively, a break below 0.9560 could call for further downside with 0.954 & 0.9505 as targets.
        USD/CAD Intraday: Rebound. The pair rose to a highest level since September 2004 as the US dollar bounced from the latest consolidation and oil prices settled below the $50-per-barrel mark. The pair stays above its key support at 1.2965 and remains on the upside. The ascending 50-period MA should now play a support role. Meanwhile, the intraday RSI is above 50 and is positively oriented. Further upside is therefore expected with the next horizontal resistances and overlaps set at 1.3090 and 1.3150 in extension. A break above these levels would call for further advance towards 1.3200 as possible. Only a break below the horizontal support at 1.2965 would open the way to further weakness towards July 16 bottom at 1.2900 at first.
        EUR/JPY Intraday: Under pressure. The pair has struck against its resistance at 135.6 but remains under pressure. The 20-period MA has just crossed below its 50-period one, which is a bearish signal calling for further decline. A first target to the downside is set at the nearest horizontal support at 134.65. A break below this level would open the way to further weakness towards July 20 bottom at 134.3 and the next support level at 133.8 as possible. A break above the key resistance at 135.6 would call for further upside towards 135.95 at first and then a retest of the July 15 high at 136.4 in extension.
        EUR/GBP Intraday: Turning down. The pair has broken down its previous key support at 0.702, which should now play a resistance role. The pair is currently challenging the resistance of the 20-period intraday MA, while the descending 50-period MA is also capping the intraday bounce. The first downside target is set at the nearest horizontal supports and overlaps at 0.6945 and 0.693 in extension. A break below this level would open the way to further weakness towards the key support at 0.69 as possible. A break above the key resistance at 0.702 would call for further upside towards July 21 high at 0.7045 at first and then a retest of July 15 high at 0.707 in extension.
        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

        July 22, 2015 22:02 ET (02:02 GMT)

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