UOB's tech targets: EUR/USD, GBP/USD, USD/JPY, AUD/USD, NZD/USD

EUR/USD: Neutral (since 14 Sep 17, 1.1890): In a 1.1860/1.2060 range.

The recent weak undertone has eased as EUR moved above 1.1995 yesterday. However, the neutral phase that started about a week ago is still intact but EUR is more likely to trade sideways at these higher levels instead of testing the 1.1820 support (as expected previously). In other words, sideway trading is expected from here, likely within a 1.1860/1.2060 range. Looking further ahead, EUR has to move clearly above the month-to-date high near 1.2090/95 in order to indicate the start of a fresh bullish phase

GBP/USD: Bullish (since 08 Sep 17, 1.3100): Break of major weekly trend-line at 1.3655 would not be surprising.

As highlighted yesterday, the current movement is viewed as a short-term consolidation that may last for a few days. The bullish phase that started more than a week ago is still intact until the stop-loss at 1.3440 is taken out. Until then, another push higher to take out the major weekly trend-line at 1.3655 is not ruled out just yet.

AUD/USD: Neutral (since 13 Sep 17, 0.8020): In a 0.7940/0.8060 range.

The potential bearish scenario highlighted in the update yesterday was invalidated when AUD moved back above 0.8010. Despite the sharp bounce from the trend-line support at 0.7940, the outlook for AUD is still viewed as neutral. From here, this pair is expected to trade sideways within a 0.7940/0.8060 range. Looking further out, a break below 0.7940 is not ruled out even though the odds for such a move have diminished.

NZD/USD: Neutral (since 06 Sep 17, 0.7255): NZD to stay supported as long as above 0.7240.

There is not much to add as NZD continues to trade in a choppy manner. As highlighted in recent updates, the current positive undertone for NZD is intact unless there is a drop back below 0.7240. That said, the rebound from a low of 0.7256 yesterday is lacking in momentum and is expected to struggle to move beyond the strong 0.7345 resistance. This level is followed by another strong resistance near 0.7375. Looking further ahead, NZD has to move clearly above 0.7400 in order to indicate that it has moved into a bullish phase.

USD/JPY: Bullish (since 13 Sep 17, 110.15): Still bullish but odds for further extension are not high.

USD moved above the strong 111.65 level yesterday but eased off quickly after touching a high of 111.87. While the bullish phase that started last Wednesday (13 Sep, spot at 110.15) is still intact, upward momentum has deteriorated and the odds for further extension to 112.20 are not high. However, only a move back below 110.40 would indicate that a short-term top is in place. On a shorter-term note, a sustained move below 111.15 would be an early indication that a top is forming.

(article by Efx)