USD Keeps Its Strength Against Commidities Currencies -- 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: Key resistance at 124.15. The pair is trading on the downside below the 20-period intraday moving average, which stays below the 50-period one. The intraday RSI is badly directly within the selling area between 50 and 30. The outlook remains bearish. As long as 124.15 is resistance, look for choppy price action with a bearish bias, with the first downside target set at 123.55 (around the low of July 24) and the second at 123.35. Only a break above 124.15 could turn the outlook bullish in which case the first upside target is set at 124.45 (July 21's high).
        EUR/USD -- EUR/USD Intraday: Bias remains bullish. The pair continues its rebound pressing against the first upside target at 1.0995. It is trading above the 20-period intraday MA, which has crossed above the 50-period one. Also the intraday RSI is well directed within the buying area between 50 and 70, calling for a new upleg. The next upside target above 1.0995 is set at the horizontal level of 1.1035. Alternatively, a break below the key support at 1.0915 could trigger a decline toward 1.0870 and 1.0810 on the downside.
        AUD/USD Intraday: Under pressure. Capped below the key resistance at 0.7340, the pair remains on the downside lacking upward momentum. The 20-period intraday MA is staying below the 50-period one, while the intraday RSI is within the selling area between 50 and 30. As long as the key resistance is not violated, the pair sees a higher probability of declining towards 0.7230 on the downside and 0.7200 in extension. Alternatively a break above 0.7340 could call for a bounce toward the horizontal level of 0.7380 on the upside.
        NZD/USD Intraday: Under pressure. The pair remains weak below its key resistance at 0.6625, and seems likely to re-test its nearest support at 0.6555. The risk of the downside breakout of this threshold is still high, as the intraday RSI lacks upward momentum, and the declining 50-period simple moving average acts as a resistance role. Given these perspectives, a break below 0.6555 would trigger a drop towards 0.653, and even to 0.6500 as possible. Alternatively, above 0.6625, look for further upside with 0.6655 and 0.6695 as targets.
        GBP/USD Intraday: Key resistance at 1.5535. The pair seems to be stuck under its horizontal level at 1.5535, which was recently confirmed as a major resistance. In terms of technical indicators, the momentum indicator RSI is mixed with a bearish bias. The trending indicators, such as the key moving averages call for an intraday technical rebound, but the upward potential is likely to be limited by the resistance at 1.5535. To sum up, as long as 1.5535 holds on the upside, look for 1.5465 and 1.5445 in extension. Alternatively, only the upside breakout of 1.5535 would trigger further upside with 1.5570 and 1.5610 as targets.
        USD/CHF Intraday: The upside prevails. The pair has clearly reversed up, supported by the rising 20- and 50-period moving averages. A strong support base around 0.9585 has formed, which should limit any downside room. Besides, the oscillator RSI is above its neutrality area at 50%, and calls for a new bounce. To conclude, as long as 0.9585 holds on the downside, the pair is expected to post a new recovery to challenge 0.9650 (July 21's top) at first, if breakout, look for further advance to 0.9680. Alternatively, below 0.9585 look for further downside with 0.9555 & 0.9535 as targets.
        USD/CAD Intraday: Upside prevails. The pair stays above its key support at 1.3010 and remains on the upside. The 20-period moving average is still above its 50-period one, while the intraday RSI is around 50 and lacks downward momentum. Thus, even though a continuation of the consolidation cannot be ruled out, its extent should be limited. Further upside is expected with the next horizontal resistances and overlaps set at 1.3070 and then at July 24 top at 1.3095 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 1.3010 would open the way to further weakness towards 1.2980 at first. A second alternative target is set at July 23 bottom at 1.295 as possible.
        EUR/JPY Intraday: Bias remains bullish. A support base at 135.45 has formed and has allowed for a temporary stabilisation. The pair is taking a breath and is moving sideways. However, as long as the support base at 135.45 is not broken down, further upside is expected with the next resistances set at July 23 top at 136.45 and then at 136.85 in extension. A break above these levels would call for further advance towards 137.30 as possible. Only a break below the key support at 135.45 would open the way to further weakness towards July 22 bottom at 134.95 and then to July 21 bottom at 134.45 as likely.
        EUR/GBP Intraday: Upside prevails. The pair stays above its key support at 0.7040 and remains on the upside. The intraday RSI lacks downward momentum. Thus, even though a continuation of the consolidation cannot be ruled out, its extent should be limited. A first upside target is set at July 23 top at 0.7100. A break above this resistance would open the way to further bounce towards 0.7130 and 0.7150 in extension. Only a break below the key support at 0.7040 would call for further consolidation towards 0.7010 at first and towards July 23 bottom at 0.6985 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 26, 2015 21:36 ET (01:36 GMT)

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