US Dollar Gets No Boost From Jobs Data -- 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: Under pressure. The US dollar lost its rebounding momentum as Treasury yields fell to 2-week lows (10-year at 2.278% on Thursday vs 2.322% on Wednesday), even though US jobless claims fell to the lowest level since 1973. USD/JPY continues to see choppy actions below the key resistance at 124.15, while the 20-period intraday moving average remains below the 50-period one. As long as the pair fails to break above 124.15, a return to 123.55 (the low of July 22) on the downside is expected.
        EUR/USD Intraday: Upside prevails. The euro remains on the upside as Greece's lawmakers approved further reform measures related to further negotiations with the country's creditors. EUR/USD keeps trading around the 20-period intraday MA, which is above the 50-period one. Meanwhile the intraday RSI is around the neutrality level of 50 lacking downward momentum. As long as 1.0915 holds as the key support, the first upside target could be 1.1035 (the high of July 15) and the second 1.1085 (the high of July 14). Below 1.0915 look for further downside with 1.087 & 1.081 as targets.
        AUD/USD Intraday: Caution. The pair is hovering above the key support at 0.7345. While intraday indicators (20-, 50-period intraday MAs and intraday RSI) are mixed, caution is advised. As long as 0.7345 holds as the key support, the pair is expected to return to the horizontal level of 0.7390 and further to 0.7415 (the high of July 23) in extension. Alternatively, a break below 0.7345 could call for further downside toward 0.7325 (the low of July 20) and 0.7290 in extension.
        NZD/USD Intraday: Under pressure. The pair has clearly reversed down following yesterday's intraday technical rebound. The technical indicator RSI fell below its neutrality area at 50%, and is still in a negative trend. Besides, a bearish cross between the 20- and 50-period MAs has been identified on an intraday basis. Therefore, as long as 0.6655 holds as the key resistance, look for a return to 0.6555 in sight. Alternatively, above 0.6655, a new recovery is more likely to 0.6695 & 0.6725 as targets.
        GBP/USD Intraday: Negative trend. The pair broke below its key support around 1.5550, representing the previous low on July 21 & 22. The downside prevails as long as 1.5570 is resistance. Furthermore, the momentum indicator RSI is below 50%, and lacks upward momentum. The key trending indicators such as simple moving averages are negatively oriented. In these perspectives, there is no reversal signal on the chart. As long as 1.5570 holds on the upside, expect further downside toward 1.5490 and 1.5465 in extension.
        USD/CHF Intraday: Turning up. The pair is posting a new rebound, and the intraday bullish trend has been confirmed by a bullish cross signal, which has been posted by the 20- and 50-period moving averages. Moreover, the oscillator RSI has turned up, showing strong positive momentum. In which case, the continuation of the rebound seems more likely to occur to 0.9625 and then to 0.9650 in the coming days. Alternatively, the downside breakout of 0.9555 would invalidate our positive view, and then call for a new decline to 0.9535 and 0.9505.
        USD/CAD Intraday: The bias remains bullish. The pair stays above its key support at 1.2990 and remains on the upside. The 20-period and 50-period MAs are playing support roles now. 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 1.3055 and 1.3090 in extension. A break above these levels would call for further advance towards 1.3125 as possible. Only a break below the horizontal support at 1.2990 would open the way to further weakness towards July 23 bottom at 1.2950 at first.
        EUR/JPY Intraday: Upside prevails. The pair stays above its key support at 135.45 and remains on the upside. The ascending 50-period moving average maintains a bullish bias. Meanwhile, the intraday RSI stands above 50 and lacks downward momentum. Further upside is therefore expected with the next horizontal resistances and overlaps set at 136.45 and 136.85 in extension. A break above these levels would call for further advance towards 137.30 as possible. Only a break below the horizontal support at 135.45 would open the way to further weakness towards July 22 bottom at 134.95 at first. A second alternative target is set at July 21 bottom at 134.45 as possible.
        EUR/GBP Intraday: Further upside. The pair has accelerated to the upside after breaking above its July 21 top at 0.7040, and is expected to post further upside. Both rising 20-peirod and 50-period moving averages should play support roles now. Meanwhile, the intraday RSI is well directed and calls for further advance as possible. Further upside is therefore expected with the next resistances set at 0.7100 and 0.7130 in extension. A break above these levels would call for further advance towards 0.7150 as possible. Only a break below the key support at 0.7040 would open the way to further weakness towards the horizontal support levels at 0.7010 and then to July 23 bottom at 0.6985 as likely.
        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 23, 2015 22:11 ET (02:11 GMT)

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