USD Buoyant On GDP Growth -- Asia Daily Forex Outlook

 
   


By Trading Central 
 

        SINGAPORE--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. The US dollar index is currently trading at 97.372, while overnight it reached a 1-week high of 97.773 after the U.S. government reported that annualized GDP rose 2.3% in 2Q vs an upwardly revised 0.6% advance in 1Q. USD/JPY is in consolidation after rising to a 7-week high of 124.58 overnight. The pair keeps trading above the key support at 123.80 while intraday indicators (20- and 50-period intraday moving averages and intraday RSI) are mixed. Even though a continuation of the consolidation cannot be ruled out, its extent should be limited. As long as 123.80 holds as the key support, the bias remains bullish with upside targets at 124.60 and 124.80 in extension. However, a break below the key support would trigger a decline toward 123.50 and 123.30 (the low of July 29).
        EUR/USD Intraday: Under pressure. The pair is posting a rebound from a 1-week low of 1.0892 and is approaching the 50-period intraday MA (now at 1.0946). Meanwhile the 20-period intraday MA is still below the 50-period one. Even though a continuation of the technical rebound cannot be ruled out, its extent should be limited. As long as the key resistance at 1.0990 is not surpassed, the pair runs a higher chance of declining to the downside targets at 1.0890 and 1.0870 (around the low of July 22) in extension. Alternatively, a break above 1.0990 would trigger a bounce toward a higher resistance at 1.1025.
        AUD/USD Intraday: Key resistance at 0.7325. The pair is posting a rebound from a 1-week low of 0.7254 and is around the 50-period intraday MA (now at 0.7292). Meanwhile the 20-period intraday MA is still below the 50-period one. Even though a continuation of the technical rebound cannot be ruled out, its extent should be limited. As long as the key resistance at 0.7325 is not surpassed, the risk of the break below the first downside target at 0.7255 remains high. Above 0.7325 look for a bounce toward 0.7350 (the high of July 29).
        NZD/USD Intraday: Key resistance at 0.6660. The pair is trading below its 50-period intraday MA, which plays as a resistance role. The intraday RSI is mixed around its neutrality level at 50. Even though a continuation of the technical rebound cannot be ruled out, its extent should be limited. Below 0.6660, look for further downside to 0.6560 and even 0.6540 in extension. Only a break above of 0.6660 would turn the outlook to positive with targets at 0.6690 and even 0.6720.
        GBP/USD Intraday: Under pressure. The pair broke below a rising trend line (established since July 24), while the 20-period intraday MA has crossed below the 50-period one. Furthermore, the intraday RSI is below its neutrality level at 50 lacking upward momentum. As long as 1.5645 holds on the upside, look for further decline to 1.5535 and even 1.5495 in extension. Above 1.5645 look for further upside with 1.5690 and 1.5735 as targets.
        USD/CHF Intraday: Bias remains bullish. The pair is trading below its intraday 20- and 50-period intraday MAs. The intraday RSI is below its neutrality level at 50. Nevertheless, a support base has formed around 0.9660 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 0.9660 is not broken, look for a technical rebound to 0.9740 first. A break below of 0.9660 would open a downward path toward 0.9600.
        USD/CAD Intraday: Further advance. The pair has broken above a descending trend line established since July 24 and is reversing up. Both rising 20-period and 50-period intraday MAs are playing support roles. Meanwhile, the intraday RSI stays above 50 and is positively oriented. Further upside is therefore expected with the next horizontal resistances and overlaps set at yesterday's high at 1.3050 at first and then at July 24's top at 1.3095 in extension. Only a break below the horizontal support at 1.2940 would open the way to further weakness towards 1.2910 at first. A second alternative target is set at July 29's low at 1.2860.
        EUR/JPY Intraday: Under pressure. The pair is reversing down after breaking below its previous support at 136.40, which also capped the pair's bounce yesterday. The declining 50-period intraday MA maintains a bearish bias. And the intraday RSI is below 50 and lacks upward momentum. A first downside target is set at the horizontal support and overlap at 135.45. A break below this level would open the way to further weakness towards 135.05. Alternatively a break above the key resistance at 136.40 would call for further upside toward July 29 high at 136.85 at first and toward July 27's high at 137.10 in extension.
        EUR/GBP Intraday: Key resistance at 0.7035. The pair is capped by its descending 50-period intraday MA and remains on the downside. The intraday RSI is around 50. Thus, even though a continuation of the technical rebound cannot be ruled out, its extent should be limited. A first downside target is set at yesterday's low at 0.6985. A break below this level would open the way to further weakness towards 0.6960 and 0.6945 as possible. A break above the key resistance at 0.7035 would call for further upside towards 0.7055 at first and then towards 0.7075 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 30, 2015 21:34 ET (01:34 GMT)

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