USD Still Firm Against Commodities Currencies -- Asia Daily Forex Outlook

 
   By Trading Central 
 

        SINGAPORE--Following are expected trading ranges and outlooks for seven major currency pairs in Asia this week:
        (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 (last 123.70): The pair has rebounded on the lower boundary of an ascending triangle pattern. The key support at 120.00 maintains strong buying pressure. Moreover, both the 20- and 50-day moving averages are still heading upward, and should continue to push the prices higher. Last but not least, the daily RSI indicator jumped above its neutrality area at 50%, and calls for further advance. In conclusion, the technical configuration is positive, and the prices are expected to challenge its year-to-date high at 126.00 in the forthcoming days, if breakout, look for 127.70 and 132.00 as our next targets. Alternative scenario, only the downside penetration of 120.00 would invalidate our bullish view, and trigger a new pullback to 118.20 and 115.50 as targets.
        EUR/USD (last 1.0977): On a daily chart the pair is rebounding from the key support at 1.0810 and is approaching the 20-day moving average (now at 1.1000), which is below the 50-day one. Though the daily RSI is below the neutrality level at 50, it lacks downward momentum. The pair's short-term outlook is mixed and caution is advised. However, as long as 1.0810 holds as the key support, a move to the upside target at 1.1215 (the high of July 10) is expected. Alternatively, a break below the key support could open a path toward 1.0450 (seen on March 13) on the downside.
        AUD/USD (last 0.7273): The pair stays below its key resistance at 0.7805 and is looking for a lower bottom. The descending 20-day and 50-day moving averages maintain a bearish bias and should play resistance roles in case the pair posts some bounce. The daily RSI is badly directed and has broken down its 30 level. A first target to the downside is set at the nearest horizontal support at 0.7250. A break below this level would open the way to further weakness towards 0.6980 and 0.6865 as possible. A break above the key resistance at 0.7805 would call for further upside towards May 14 top at 0.8165 at first and then to 0.8305 in extension.
        NZD/USD (last 0.6573): The pair has accelerated to the downside after breaking down its previous support at 0.7200, which should now play a key resistance role. The descending 50-day moving average maintains a long-term bearish bias. And the daily RSI is below 50 and lacks upward momentum. A first target to the downside is set at the nearest horizontal support at 0.6200. A break below this level would open the way to further weakness towards 0.5840 and 0.5500 as possible. A break above the key resistance at 0.7200 would call for further upside towards May 14 top at 0.7570 at first and then to 0.7750 in extension.
        GBP/USD (last 1.5518): The pair is consolidating between its key resistance at 1.5935 and its key support at 1.5170 and is below its 20-day and 50-day moving averages. Nevertheless, 1.5170 represents a significant key support, which should limit the downside potential. In addition, the RSI indicator lacks downward momentum. As long as 1.5170 is not broken, the pair is likely to rebound and test its next horizontal resistance at 1.5935 again. A break above of this level would open an upward path to 1.6190. Only a break below of 1.5170 would turn the outlook to negative and will open a downward path to 1.4560.
        USD/CHF (last 0.9627): The pair broke above a declining trend line and accelerated on the upside. The pair is now trading above its rising 20-day and 50-day moving averages, which play as support roles. Furthermore, the RSI indicator is positive above its neutrality area at 50%. In addition, a support base has formed around 0.9060, which should limit the downside potential. As long as 0.9060 is support, look for further upside to 0.9860 and 1.0240 in extension. Below 0.9060 look for further downside with 0.8850 and 0.8450 as targets.
        USD/CAD (last 1.3040): The pair broke above a declining trend line, which confirms a positive outlook. The upside momentum is reinforced by its rising 20-day and 50-day moving averages, which play as support roles. In addition, the RSI indicator is above its neutrality area at 50% and heading upwards. As long as 1.2120 is support, look for further upside to 1.3080. A break above of this level would open the upward path to 1.3450. Below 1.2120 look for further downside with 1.1915 and 1.1680 as targets.
        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 21:10 ET (01:10 GMT)

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