EURUSD: Neutral: Back in a range, likely between 1.0500 and 1.0715
EUR dipped to low of 1.0587 yesterday but rebounded quickly. While the undertone has improved somewhat and a move above the 1.0715/20 high seen earlier this week would not be suprising, the current lackluster momentum suggests that a sustained up-move is unlikely (next resistance at 1.0765). in other words, we continue to expect range trading for now, likely between 1.0500 and 1.0715 even though the risk appears to be tilted to the upside.
GBPUSD: Neutral: Rebound to extend further towards 1.2480.
There is not much to add as we continue to hold on to the view that the current GBP strength has room to extend higher towards 1.2480. This level is a strong resistance and a clear break above would indicate that GBP could move much higher in the coming days/weeks. All in, GBP is expected to stay underpinned as long as 1.2250 in intact.
AUDUSD: Bullish: Focus is at 0.7630 now.
At the time of writing, AUD has moved briefly above the major resistance at 0.7580 and the focus has shifted to 0.7630 now. We still have some reservations on the current momentum and if long, stops should be trailed to 0.7490 (just below the 0.7493 low seen yesterday).
NZDUSD: Bullish: 0.7250 is back in sight.
NZD dipped to a low of 0.7116 yesterday, coming close to the trailing stop loss for our bullish view at 0.7095. The subsequent sharp rebound is a welcomed surprise and from here, 0.7250 appears to be back in sight. In other words, the bullish phase that started last Friday (13 Jan) is still intact and a move above last month’s 0.7250 high would shift the focus towards 0.7300 next.
USDJPY: Neutral: In a 113.50/116.00 range
We shifted to a neutral stance yesterday and held the view that the rebound in USD has room to extend towards 115.45.50. USD hit a high of 115.61 yesterday but eased off quickly. The failure to move in a sustained manner is not suprising and from here, we continue to hold a neutral stance and expect USD to trade in a broad 113.50/116.00 range (even though the immediate bias is tilted to the upside).