USD Boosted by Fed Official's Rate Comments -- 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: Upside prevails. Currently trading at 98.189, the US dollar index stays firm on the upside after getting a boost from comments by Atlanta Federal Reserve President Dennis Lockhart, who confirmed his support for an interest rate hike in September. US 10-year Treasury yield hit 2.22% then, and is now at 2.23%. USD/JPY maintains its strong upward momentum climbing with the support of 20-period intraday moving average. The intraday RSI is well directed within the buying area between 50 and 70. The first upside target at 124.60 (around the high of July 30) is in sight. The second upside target is set at 124.75. Only a break below the key support at 123.80 would turn the intraday outlook bearish and call for a decline toward 123.50 (around the low of July 31).
        EUR/USD Intraday: Downside prevails. The pair keeps trading on the downside heading towards the first downside target at 1.0835. It is capped by the descending 20-period intraday MA, which is below the 50-period one. The intraday RSI has broken down the over-sold 30 level, while there is no sign of a bullish divergence. The second downside target is set at 1.0810 (around the low of July 21). Only a break above the key resistance at 1.0930 would turn the intraday outlook bullish and call for bounce toward 1.0965.
        AUD/USD Intraday: Bias remains bullish. The pair is in consolidation after surging up to 0.7428 overnight. As long as 0.7345 holds as the key support, the bias remains bullish with the first upside target at 0.7405. However, a break below 0.7345 could call for further decline toward alternative downside supports at 0.7300 and 0.7260.
        NZD/USD: Downside prevails. The pair is capped by a declining trend line (established since July 28) and is trading below the 20- and 50-period MAs. The intraday RSI is below the neutrality level at 50 and lacks upward momentum. As long as the key resistance at 0.6575 is not broken, look for further downside to 0.6500 and to 0.6470 in extension. Only a break above 0.6575 would turn the intraday outlook to bullish with the first alternative upside target at 0.6615.
        GBP/USD Intraday: Under pressure. The pair remains under pressure below its key resistance at 1.5600, and seems likely to post further decline. Both the 20- and 50-period MAs are heading downwards, and the intraday RSI is below its neutrality level of 50%, confirming a negative outlook. Currently, the prices are challenging its nearest support at 1.5555, and the risk of the downside breakout of this threshold remains high. Our next down target is set at 1.5535. Alternatively, only the upside penetration of 1.5600 would open the path to 1.5645 and 1.5680 in extension.
        USD/CHF Intraday: Upside prevails. The pair broke above its key resistance at 0.9715 yesterday, which opened the path towards 0.9845. Technically, the key moving averages are turning up, and the intraday RSI is positive above the neutrality level at 50. Also, the pair seems more likely to be forming a "flag" bullish continuation pattern. In these perspectives, as long as 0.9715 is support, expect a continuation of the rebound towards 0.9845 after a pause. Alternative scenario, below 0.9715 look for further downside with 0.9665 & 0.964 as targets.
        USD/CAD Intraday: The upside prevails. The pair stays above its key horizontal support at 1.3105 and remains on the upside. The 20-period intraday MA has just crossed above its 50-period one, which is a bullish signal for further advance. Meanwhile, the intraday RSI is still above 50 and lacks downward momentum. Further upside is therefore expected with the next horizontal resistance and overlap set at 1.3210 at first. A break above this level would call for further advance towards 1.3260 as possible. Only a break below the horizontal support at 1.3105 would open the way to further weakness towards 1.3050 at first. A second alternative target is set at 1.3010 as possible.
        EUR/JPY Intraday: Downside prevails. The pair has broken down its previous low, and is expected to look for a lower bottom in the forthcoming sessions. Both descending 20-period and 50-period intraday MAs are playing resistance roles now. And the intraday RSI is badly directed and has broken down its 30 level. A first target to the downside is set at the horizontal support and overlap at 135.05. A break below this level would open the way to further weakness towards 134.85 as possible. Only a break above the key resistance at 135.75 would call for further upside towards Aug 4 high at 136.20 at first and then towards Aug 3 high at 136.45 in extension.
        EUR/GBP Intraday: Downside prevails. The pair has accelerated to the downside after breaking down its previous support at 0.7010, which should now play a key resistance role. Both descending 20-period and 50-period intraday MAs maintain a bearish bias. And the intraday RSI has broken down 30, without showing any reversal signals. A first target to the downside is set at the horizontal support and overlap at 0.6970. A break below this level would open the way to further weakness towards 0.6960 as possible. Only a break above the key resistance at 0.7010 would call for further upside towards 0.7030 at first and then towards Aug 4 high at 0.7045 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

        August 04, 2015 23:27 ET (03:27 GMT)

#USD_Boosted
#FedsOfficial
#RateComments
#AsiaDailyForexOutlook