USD Stable Ahead of Non-Farm Payrolls -- 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 and technical analysis - Fibonacci levels, trendlines and moving averages.)
        USD/JPY Intraday: Bias remains bullish. Currently trading at 97.789, the US dollar index remains stable as traders are waiting for tonight's July US non-farm payrolls numbers (vs +225K expected, +223K in June), which could provide hints for the Federal Reserve's next interest rate move. Overnight, US initial jobless claims increased slightly to 270K for the week ended August 1 (vs 272K expected, 267K in the prior week) and continuing claims were 2255K for the week ended July 25 (vs 2249K expected, 2269 in the prior week). USD/JPY stays on the upside above the key support at 124.45 after striking against the first upside target at 125.00. The intraday RSI is around the neutrality level of 50 lacking downward momentum. So, even though a continuation of the consolidation cannot be ruled out, its extent should be limited. Only a break below the key support at 124.45 would turn the intraday outlook bearish and call for a decline toward the first alternative downside target at 124.30.
        EUR/USD Intraday: Upside prevails. The pair maintains its upward momentum. It is riding on the 20-period intraday moving average (which is above the 50-period one) and approaching the first upside target at 1.0945 (around the high of yesterday). The intraday RSI stays within the buying area between 50 and 70 lacking downward momentum. The second upside target is placed at 1.0995 (the high of August 3). Only a break below the key support at 1.0875 would turn the intraday outlook bearish and call for a drop toward 1.0845 (the low of August 5).
        AUD/USD Intraday: Under pressure. The pair keeps trading below the key resistance at 0.7365 and is overlapping with both the 20- and 50-period MAs. The intraday RSI is around the neutrality level of 50 lacking upward momentum. As long as the key resistance is not surpassed, the pair stands a higher chance of returning to the first downside target at 0.7315 (around yesterday's low) from where the current technical rebound started.
        NZD/USD Intraday: Caution. The pair is posting a technical rebound, and is very close to its key resistance at 0.6555. A re-test of this threshold is highly expected in the coming trading hours. A breakout is needed to trigger a clear trend reversal to the upside. Nevertheless, intraday technical indicators are mixed and call for caution. Only the upside breakout of 0.6555 would confirm a new bullish trend, and call for 0.6575 and 0.6615 in extension.
        GBP/USD Intraday: Under pressure. The pair remains under pressure after breaking down its key level at 1.5565. The previous support now acts as a strong resistance role, and should limit any upside potential. The intraday moving averages are heading downward, and should continue to push the prices lower. In these perspectives, the trend is bearish with downside targets at 1.5470 (the previous swing low) & 1.5450 in extension, as long as 1.5565 holds as the key resistance. Alternatively, above 1.5565 look for further upside with 1.5590 & 1.5635 as targets.
        USD/CHF Intraday: Bias remains bullish. The pair stands firmly above 0.9760 (a horizontal support), and seems likely to post further advance in the short run. At the current stage, a limited consolidation cannot be ruled out on an intraday chart, as the intraday RSI lacks momentum. However, as long as 0.9760 holds as the key support, the bias remains bullish, and further upside is expected to be 0.9850 and 0.9895. Alternatively, below 0.9760 look for further downside with 0.9715 & 0.9665 as targets.
        USD/CAD Intraday: Downside prevails. The pair has broken down August 5's low, and is expected to look for a lower bottom in the forthcoming sessions. Both descending 20-period and 50-period MAs maintain a bearish bias. And the intraday RSI stays below 50 and lacks upward momentum. The first downside target is set at the horizontal level at 1.3050. A break below this level would open the way to further weakness towards 1.3025. Only a break above the key resistance at 1.3150 would call for further upside toward 1.3180 at first and then towards August 5's high at 1.3210 in extension.
        EUR/JPY Intraday: Upside prevails. The pair stays above its key support at 135.60 and remains on the upside. The 20-period intraday MA has just crossed above its 50-period one, which is a bullish signal. The intraday RSI is around 50. Thus, even though a continuation of the consolidation cannot be ruled out, its extent should be limited. Further upside is expected with the first upside target set at yesterday's high at 136.50 at first. A break above this level would call for further advance toward 136.90. Only a break below the horizontal support at 135.60 would open the way to further weakness toward 135.25. A second alternative downside target is set at August 5's low at 134.95.
        EUR/GBP Intraday: Further advance. The pair has accelerated to the upside after breaking above its previous resistance at 0.7000, which should now play a key support role. Both rising 20-period and 50-period intraday MAs suggest further upside as well. And the intraday RSI stays above 50 and is positively oriented. Further upside is therefore expected with the first upside target set at 0.7065. A break above this level would call for further advance toward 0.7080. Only a break below the key support at 0.7000 would open the way to further weakness towards yesterday's low at 0.6970 at first. A second alternative downside target is set at August 5's low at 0.6950.
        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 characterised 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 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 06, 2015 21:39 ET (01:39 GMT)

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