USD Gets Support From Services Data -- 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 97.764, the U.S. dollar index is seeing mixed trading. Overnight the ISM Services Sector Index rose to 60.3 in July, the highest level since August 2005, from 56.0 in June, while the ADP National Employment Report showed that U.S. private employers added 185,000 jobs in July (vs +215,000 expected, +229,000 in June). Also the U.S. government reported that the country's trade deficit amounted to $43.84 billion in July (vs $43.00 billion deficit expected, $40.94 billion deficit in June). While having come off from its overnight high of 125.01, a level last seen in early June, USD/JPY keeps trading on the upside (now at 124.81) and around the 20-period intraday moving average (now at 124.83), which remains above the 50-period one. And the intraday RSI is within the buying area between 50 and 70. The first upside target is set at the horizontal level of 125.25 and the second at 125.60. Only a break below the key support at 124.30 would turn the intraday outlook bearish and call for a decline toward the first alternative downside target at 124.10.
        EUR/USD Intraday: Bullish bias above 1.0845. The pair continues its rebound from yesterday's low of 1.0845. It is trading above both the 20- and 50-period intraday MAs, and approaching the first upside target at 1.0935 (the high of August 5). The intraday RSI is within the buying area between 50 and 70 and riding on a rising trend line. Therefore the pair's upward momentum remains intact. Above 1.0935, the second upside target is set at 1.0965. Only a break below the key support at 1.0845 would turn the intraday outlook bearish and call for a drop toward 1.0810.
        AUD/USD Intraday: Under pressure. The pair keeps testing the first downside support at 0.7330 while being capped by the 50-period intraday MA. The intraday RSI is below the neutrality level of 50 lacking upward momentum. Below 0.7330, the second downside target is set at 0.7300 (last seen on August 4). Alternatively, if the pair breaks above the key resistance at 0.7390, a bounce toward the first alternative upside target at 0.7430 (around the high of August 4) is expected.
        NZD/USD Intraday: Under pressure below 0.6550. The pair is clearly in a negative trend on an intraday basis, as the process of the lower highs and lows remains intact. The key moving averages are heading downward, without showing any reversal signal. Besides, the intraday RSI remains below the neutrality level of 50. Also, a horizontal resistance at 0.6550 maintains selling pressure. As long as 0.6550 is resistance, further decline seems more likely to test 0.6490 (the previous swing low), if breakout, look for 0.6470. Alternatively, above 0.6550, expect further upside with 0.6575 and 0.6615 as targets.
        GBP/USD Intraday: Bias remains bullish. The pair has recently jumped above 1.5560, and stands firmly above this threshold and its 50-period intraday MA, which is turning up. The intraday RSI also stays above its neutrality level at 50 and favors a new bounce. The positive outlook remains unchanged, while a new challenge of the resistance at 1.5650 is on the cards before any further advance. Only the upside penetration of 1.5650 would open a path to 1.5680 (July 31's high). Alternatively, below 1.5560 look for further downside with 1.5525 & 1.5500 as targets.
        USD/CHF Intraday: Further advance. The pair remains bullish above the key support at 0.9745, and is likely to post a new rebound in the coming trading hours. The current consolidation should be very limited, as the 20- and 50-period intraday MAs are still on the upside, and the intraday RSI lacks downward momentum. In which case, as long as 0.9745 holds on the downside, look for 0.9845 and 0.9895 in extension. Alternatively, only the downside breakout of 0.9745 would invalidate our bullish view, and then call for a new pullback with 0.9715 and 0.9665 as targets.
        USD/CAD Intraday: Key resistance at 1.3210. The pair is challenging its key resistance at 1.3210 and remains on the downside. The narrowing of intraday Bollinger bands suggests a trading range in the forthcoming sessions. The intraday RSI stays below 50 and lacks upward momentum. A first target to the downside is set at Aug 5 low at 1.3105. A break below this level would open the way to further weakness towards the next horizontal support and overlap at 1.3050 as possible. Only a break above the key resistance at 1.3210 would call for further upside towards 1.3260 at first and then towards 1.3290 in extension.
        EUR/JPY Intraday: Upside prevails. The pair has crossed above its 20-period and 50-period intraday MAs and remains on the upside. Both MAs are acting as support levels. And the intraday RSI stays above 50 and is positively oriented. Further upside is therefore expected with the next horizontal resistance and overlap set at 136.20 at first. A break above this level would call for further advance towards 136.50 as possible. Only a break below the horizontal support at 135.50 would open the way to further weakness towards Aug 5's low at 134.95 at first. A second alternative target is set at 134.65 as possible.
        EUR/GBP Intraday: Under pressure. The pair has posted some bounce but the upward potential is likely to be limited by the resistance at 0.6995. The 20-period intraday MA still stands below its 50-period one, while the intraday RSI is around 50 and lacks upward momentum. A first target to the downside is set at yesterday's low at 0.6950. A break below this level would open the way to further weakness towards 0.6935 as possible. Only a break above the key resistance at 0.6995 would call for further upside towards 0.7010 at first and then towards 0.7030 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 05, 2015 21:34 ET (01:34 GMT)

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