USD Buoyant as Commodities Head South -- 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: Bullish bias above 123.75. Currently trading at 97.582, the U.S. dollar index maintains its upward momentum and keeps pressuring commodities currencies. Overnight U.S. crude oil price dropped 4.1% to close at $45.17/bbl, while gold was down 0.9% and silver fell 1.9%. Meanwhile Australia's central bank will announce its decision on interest rate today. USD/JPY keeps trading above the key support at 123.75 and is breaking above the 50-period intraday moving average. The intraday RSI has just landed on the neutrality level of 50 and is turning up. The first upside target is set at 124.35 (around the high of July 31) and the second one at 124.60 (around the high of July 30). Only a break below 123.75 would turn the intraday outlook bearish and call for a decline toward 123.50 (around the low of July 31).
        EUR/USD Intraday: Under pressure. The pair continues its downward path pointing to the immediate downside target at 1.0925 (seen on July 31). The descending 20-period intraday MA is below the 50-period one (also descending), while the intraday RSI remains within the selling area between 50 and 30. As long as 1.0995 holds as the key resistance, the pair could fall further to 1.0890 (around the low of July 30) after passing 1.0925. Alternatively upside target above 1.0995 is set at 1.1025.
        AUD/USD Intraday: Under pressure. The pair keeps trading on the downside and is approaching the first downside target at 0.7250. It is below the 20-period intraday MA (now at 0.7272), which is under the 50-period one (now at 0.7282). Also the intraday RSI remains within the selling area between 50 and 30, lacking upward momentum. As long as 0.7315 is resistance, the pair could fall further to 0.7230 (around the low of July 31) after passing 0.7250. Alternatively upside target above 1.0995 is set at 0.7335.
        NZD/USD Intraday: Turning down. The pair failed to break above its intraday resistance at 0.6655, and then reversed down on an intraday basis. The intraday RSI is below its neutrality level at 50 with a negative bias. Moreover, a bearish cross between the 20- and 50-period intraday MAs has been identified, which should confirm a negative view. As long as 0.6615 is not surpassed, look for further decline to 0.6530 and 0.6500 in extension. Alternatively, above 0.6615 look for further upside with 0.6655 and 0.6690 as targets.
        GBP/USD Intraday: Under pressure. The pair is moving sideways between 1.5680 and 1.5555, and seems likely to test the lower boundary in sight. Besides, the prices remain under pressure below horizontal resistance at 1.5645. The intraday RSI broke below its neutrality level at 50, and lacks upward momentum. Therefore, as long as 1.5645 is resistance, expect a return to 1.5555, and even to 1.5535 as possible. Alternative scenario, above 1.5645 look for further upside with 1.5680 and 1.5720 as targets.
        USD/CHF Intraday: Upside prevails. The pair extended its gains after confirming a bullish reversal configuration in "V-bottom". The intraday RSI is supported by a rising trend line, and the 20- and 50-period moving averages are turning up. The technical indicators favor further advance. As long as 0.9630 holds as the key support, look for a bounce to 0.9720 and 0.97650 in extension. Alternatively, below 0.9630 look for further downside with 0.9600 and 0.9570 as targets.
        USD/CAD Intraday: Upside prevails. The pair is well supported by its rising 50-period intraday MA, and is moving sideways above its key support at 1.3095. The intraday RSI is still above 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 set at 1.3210 at first and 1.3260 in extension. Only a break below the key support at 1.3095 would open the way to further weakness towards 1.3050 at first.
        EUR/JPY Intraday: Under pressure. The pair stays below its key resistance at 136.25 and remains under pressure. Both descending 20-period and 50-period intraday MAs are acting as resistance levels. And the intraday RSI is below 50 lacking upward momentum. The first downside target is set at the horizontal support and overlap at 135.50 (around the low of July 30). A break below this level would open the way to further weakness towards 135.25 in extension. A break above the key resistance at 136.25 would call for further upside towards 136.50 at first and then towards July 29's high at 136.90 in extension.
        EUR/GBP Intraday: Under pressure. The pair is taking a breath and is moving sideways below its key resistance at 0.7055. The intraday RSI is around 50 and lacks upward momentum. The downside target is set at 0.7010. A break below this level would open the way to further weakness towards July 30's low at 0.6985. A break above the key resistance at 0.7055 would call for further upside towards 0.7075 at first and then towards July 31 high at 0.7100 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 03, 2015 21:31 ET (01:31 GMT)

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