Forex Technical Analysis

AUD/JPY: Bulls unstoppable, back above 85 handle

The AUD/JPY cross, a risk barometer, benefits from the improved risk sentiment in early Europe as markets cheer the rebound in riskier assets, particularly oil and industrial metals.

AUD/JPY hovers around 100-DMA at 85.16

Currently, the AUD/JPY pair trades 0.85% higher at 85.10, easing-off fresh session highs reached at 85.22 last minutes. The cross in the AUD/JPY strengthens further this session, largely backed by the strong gains seen in the AUD/USD pair, as the rallying oil and copper prices underpin.

While the return of risk-on trades into the markets, diminishes the safe-haven bids for the Japanese yen across the board and hence, supports the ongoing recovery in the AUD/JPY cross. Meanwhile, USD/JPY rises 0.28% to 113.52, hovering close to session highs printed at 113.59 levels.

Looking ahead, there is nothing of relevance in terms of macro data for the cross today and hence, markets look forward to the weekend’s Chinese industrial production and retail sales numbers ahead of the key BOJ policy decision next week.

AUD/JPY Technical Levels


To the upside, the next resistance is located at 85.50/64 (round number/ Mar 10 High) and above which it could extend gains to 86.17/22 (Mar 2 & 1 High). To the downside immediate support might be located 84.09/84 (daily low/ round number) below that at 83.61 (1h 200-SMA).

The AUD/JPY cross, a risk barometer, benefits from the improved risk sentiment in early Europe as markets cheer the rebound in riskier assets, particularly oil and industrial metals.

(Market News Provided by FXstreet) [...]

EUR/USD outlook shifted to bullish – UOB

The pair’s outlook for the next 1-3 weeks has now shifted to bullish from neutral, according to the research team at UOB Group.

Key Quotes

“The strong overnight rally is accompanied by impulsive momentum and the outlook for EUR in the next 1 to 2 weeks has shifted to bullish from neutral. That said, it is very likely that we have seen a bulk of the move”.

“The current price action is reminiscent of the rally last December where the one day surge to a high of 1.0980 led to a limited extension to 1.1059 (before quickly turning sideways)”.

“Only clear and sustained break above 1.1245 would indicate that a move towards 1.1375 has started. Support is at 1.1090 but only a move below 1.1030 would indicate that temporary top is in place”.

The pair’s outlook for the next 1-3 weeks has now shifted to bullish from neutral, according to the research team at UOB Group...

(Market News Provided by FXstreet) [...]

EUR/USD forecast: digesting the ECB – Commerzbank and Danske Bank

With the ECB effects still lingering, EUR/USD is extending its overnight sideline pattern into the European session, hovering over 1.1170 after climbing as high as 1.1220 on Thursday.

“Going forward the key sources of potential downside in the cross are set to derive from a continued improvement in risk sentiment and/or markets pricing in Fed hikes more aggressively. While this could lend support to USD near term, we maintain that EUR/USD will be range-bound on a 1-3M horizon around the 1.10 level and headed higher thereafter still targeting 1.16 in 12M”, suggested Analyst at Danske Bank Kristoffer Lomholt.

In addition, Axel Rudolph, Senior Technical Analyst at Commerzbank, noted the pair’s “sharp post ECB drop took it to 1.0822 before it reversed its trend and even more brutally shot up to the 1.1200 region. This up surge led us to neutralize our weekly outlook and means that the eight month resistance line at 1.1319 and also the February high at 1.1377 are back in the picture. Further up lurk the September and October highs at 1.1460/95”.

With the ECB effects still lingering, EUR/USD is extending its overnight sideline pattern into the European session, hovering over 1.1170 after climbing as high as 1.1220 on Thursday...

(Market News Provided by FXstreet) [...]

Gold bulls lose grip again around $1280

Gold bulls ran out of steam again as prices neared $1280 levels on signs of stability in the USD index following Thursday’s sharp sell-off.

Eyes European equities

ECB’s Bazooka was not well received by the markets, which is evident from a 2% drop seen in Germany’s DAX index. Gold strengthened on account of haven appeal, rising from $1237 to $1273 levels post ECB decision.

The metal could continue to track the European indices today. Meanwhile, USD index is showing signs of stability, which could weigh over metal prices.

Gold Technical Levels

Prices currently trade around $1270/Oz levels. The immediate support is seen at 1255.82 (10-DMA), under which prices could drop to 1237 (previous day’s low). On the other hand, a break above 1283 (daily high) would open doors for a test of psychological resistance of 1300 handle.

Gold bulls ran out of steam again as prices neared $1280 levels on signs of stability in the USD index following Thursday’s sharp sell-off.

(Market News Provided by FXstreet) [...]

USD/CAD dips to lows near 1.3250

The Canadian dollar has resumed its upside vs. its neighbor at the end of the week, with USD/CAD grinding lower to the mid-1.3200s.USD/CAD attention to oil, CAD dataThe ongoing rally in crude oil prices continues to lend support to CAD, this time dragg... [...]