The latest on the euro and four other pairs from United Overseas Bank
EUR/USD: Bearish: Next key level at 1.1140/45.
Momentum indicators continue to deteriorate and the prospect for the current bearish phase to extend lower to the next key level at 1.1140/45 is not high. Unless there is a clear break below 1.1180 within these couple of days, a move back above 1.1295 is enough to indicate that a short-term low is in place.
GBP/USD: Bullish: Bullish phase close to ending.
The sharp drop last Friday was unexpected and the 1.4488 low was just a few pips above our 1.4485 stop-loss. Unless GBP can move and stay above 1.4580 within these couple of days, a break below 1.4485 seems likely. In other words, the recent high 1.4663 is likely the extent of the current bullish phase and the target of 1.4770 is not met.
AUD/USD: Neutral: In a lower range of 0.7150/0.7350.
There is not much to add as AUD traded mostly sideways last Friday. The outlook is still viewed as neutral but we are shading the expected sideway trading range lower to 0.7150/0.7350 (from 0.7200/0.7400 previously).
NZD/USD: Neutral: In a 0.6690/0.6845 range.
There Is no change to the current neutral view and we continue to expect broad sideway trading within a 0.6690/0.6845 range.
USD/JPY: Bullish: Took partial profit at 110.45.
The call to take partial profit at 110.45 last Friday was timely as USD dropped sharply after touching a high of 110.58. The risk of a short-term top has increased significantly but confirmation is only upon a break of 109.20. On the upside, 110.55/60 is acting a major resistance now and further USD strength is contingent upon a clear break above this level.
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