Major Banks Forecasts-UOB

EURUSD: Bearish: Take to partial profit at 1.0640/45

In line with anticipation, EURUSD continues to move lower and touched 1.0663 yesterday. Thus level is just above the revised target indicated previously at 1.0640. While the bearish phase that started on Monday is still intact, shortertm indicators are over-extended and those who are ahort should look to take partial-profit at 1.0640/45 (next support at 1.0600).

GBPUSD : Neutral: In a broad 1.2300/1.2600 range.

We just turned neutral on GBP yesterday and there is no change to the view. This is pair is expected to trade sideways for now, likely within a 1.2300/1.2600 range.

AUDUSD: Bearish: Target 0.7440/45

The sharp drop in AUDUSD yesterday indicates that the “couple of days of consolidation” highlighted in recent updates has ended. The target remains unchanged at 0.7440/45 but extension towards of 0.7405 would not be surprising .

NZDUSD: Bearish: To take partial profit at 0.7035

NZDUSD touched a low of 0.7036 yesterday just one pip above our extension target of 0.7035. Downward momentum is showing sign of waning and the odds for a sustained move below 0.7035 have diminished. Those who are short should look to take partial profit at 0.7035.

USDJPY: Bullish: Diminished odds for further USD strength.

USD touched a high of 109.75 yesterday but pulled back rapidly to close lower for the day. The odds for further USD strength have clearly diminished unless there is sharp rise above 109.75/00 within these 1 to 2 days. We have advocated taking partial-profit at 109.00 previously and from here.

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