EUR/USD: Bullish: Next target at 1.1050 followed by 1.1120.

While EUR finally broke above 1.1100, the lack of acceleration higher after the breach came as a surprise (high of 1.1022 early this morning). This level is a declining trend-line on the weekly chart and a break has a rather bullish connotation. For now, we will continue to hold a bullish stance until 1.0900 is taken out. Target is at 1.1050 followed by 1.1120.

GBP/USD: Neutral: Bullish again if daily closing above 1.3000.

The rapid swing higher from last Thursday (04 May) low of 1.2831 came as a surprise. While the pressure has quickly shifted to the upside, only a daily closing above 1.3000 would indicate that GBP has moved into a bullish phase again. In the meanwhile, this pair is expected to stay underpinned with solid support at 1.2880.

AUD/USD: Bearish: To take partial profit at 0.7335/40.

The 0.7370 target was exceeded as AUD hit a low of 0.7368 last Friday. Despite the strong rebound from the low, the bearish phase that started last Thursday is still intact. That said, a combination a waning momentum and oversold conditions suggest that any further downside may have difficulty in breaking below the next support at 0.7330. Those who are short should look to book partial profit at 0.7335/40, ahead of 0.7330.

NZD/USD: Neutral: In a 0.6840/0.6955 range.

NZD closed on a strong note last Friday and the recent downward pressure has eased. This pair has likely moved into a sideway consolidation phase and is expected to trade sideways between 0.6840 and 0.6955 for now.

USD/JPY: Shift from bullish to neutral: In a 111.80/113.50

Despite moving above 113.00 early this morning (high of 113.10), upward momentum is not strong and we view the current price action as part of a 111.80/113.50 consolidation range.

Source: United Overseas Bank Global Economics & Markets Research

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