USD Lifted by Fed's Optimism, Watching GDP Next -- Asia Daily Forex Outlook

 
   By Trading Central 
 

        SINGAPORE--The following are projected trading ranges and outlooks for nine major currency pairs 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. The US dollar index is currently trading at 97.290, higher than the previous session's high of 97.254. Overnight the US Federal Reserve expressed satisfaction with solid gains in the labor market. Traders will look for further hints on the Fed's next interest rate move from tonight's 2Q US GDP data. USD/JPY has broken above the 124 mark and pressing against its immediate upside target at 124.10. All intraday indicators, including the 20- and 50-period intraday MA and the intraday RSI, are well directed and call for further advance. The second upside target is placed at 124.25 (seen on July 21). Alternatively, a break below the key support at 123.50 could trigger a decline toward 123.30.
        EUR/USD Intraday: Downside prevails. The pair is under pressure and approaching the first downside target at 1.0960. It is below both the descending 20- and 50-period intraday MAs. The intraday is badly directly within the selling area between 50 and 30. A break below 1.0960 could trigger a further decline toward the second downside target at 1.0920 (around the low of July 24). Only a break above the key resistance at 1.1085 could call for a bounce toward 1.1130 (around the high of July 27).
        AUD/USD Intraday: Turning down. The pair has broken below its previous key support and lacks upward momentum. Both the 20- and 50-period intraday MAs are downward-sloping, while the intraday RSI is below the neutrality level of 50. As long as 0.7325 holds as the key resistance, the first downside target is set at 0.7255 (the low of July 28) and the second at 0.7230. Alternatively, a break above 0.7325 could call for a bounce toward 0.7350 (the high of July 29).
        NZD/USD Intraday: Turning down. The pair has broken below a rising trend line (since July 24, 2015) confirming a negative outlook. Furthermore, the 20-period and 50-period intraday MAs are declining and act as resistances. Also, the intraday RSI indicator is below its neutrality area at 50 and lacks upward momentum. As long as 0.6690 holds on the upside, look for further downside to 0.6625 and even 0.6595 in extension. Only a break above of 0.6690 would turn the outlook to positive and calls for a technical rebound to 0.6720.
        GBP/USD Intraday: Bias remains bullish. The pair is consolidating below its 20-period and 50-period intraday MAs. The intraday RSI indicator is below its neutrality area at 50. Nevertheless, a support base has formed around 1.5570, 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 1.5570 is not broken, look for a technical rebound towards 1.5690 and even 1.5735 in extension. Only a break below of 1.5570 would turn the outlook to negative with downside targets at 1.5535 & 1.5495 in extension.
        USD/CHF Intraday: Upside prevails. The pair is rebounding above its rising intraday 20-period and 50-period MAs, which act as supports. In addition, the intraday RSI indicator is bullish and calls for further upside. Furthermore, 0.9600 represents a significant key support, which should limit the downside potential. As long as 0.9600 is support, look for further upside to 0.9715. A break above of this level would call for further advance to 0.9740. Only a break below of the key support at 0.9600 would turn the outlook to negative and open a downward path to 0.9545 and even 0.9525.
        USD/CAD Intraday: Under pressure. The pair stays below its key resistance at 1.2980 (July 27's low) and remains under pressure. The intraday RSI is around 50 and lacks upward momentum. 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 July 28 low at 1.2910. A break below this level would open the way to further weakness towards yesterday's low at 1.2860 and then towards 1.2810 as possible. A break above the key resistance at 1.2980 would call for further upside towards 1.3050 at first and then to July 24's top at 1.3095 in extension.
        EUR/JPY Intraday: Turning down. The pair is reversing down after breaking below yesterday's low, and remains under pressure below its key resistance at 136.60. Both 20-period and 50-period intraday MAs are turning down as well, confirming a bearish bias. The intraday RSI is below 50 and lacks upward momentum. A first target to the downside is set at the horizontal support and overlap at 135.80. A break below this level would open the way to further weakness towards July 24's low at 135.45. Alternatively a break above the key resistance at 136.60 would call for further upside towards July 27 high at 137.10 at first and then to 137.60 in extension.
        EUR/GBP Intraday: Downside prevail. The pair is trading within a bearish channel established since July 27 and is expected to look for a lower bottom. The descending 50-period MA maintains a bearish bias. And the intraday RSI stays below 50, calling for further decline as possible. A first target to the downside is set at the horizontal support and overlap at 0.7015. A break below this level would open the way to further weakness towards 0.6985. Alternatively a break above the key resistance at 0.7075 would call for further upside towards yesterday's high at 0.7100 at first and then to 0.7125 in extension.
        This 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 29, 2015 21:38 ET (01:38 GMT)

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