The following are the intraday outlooks for EUR/USD, USD/JPY, and EUR/GBP as provided by the technical strategy team at SEB Group.
EUR/USD: Waiting for the 1.1067 test. Very little action took place yesterday with the pair locked in a narrow contracting range, a likely hourly bear triangle. As such we are still awaiting a move lower and a soon test of the 1.1067 support.
USD/JPY: (WEEKLY GRAPH) A mounting upward pressure. Since a few weeks back the downside pressure seems not only to have decreased but also to have turned to the upside. We are now more frequently making attempts above the 55d ma band than below it. The behavior is clearly interesting and especially so in the light of the latest CoT report that showed that the market now seems to be rebuilding a short yen/long dollar position (position increased from $0.6mio to $3.25 bio during the latest reporting period).
EUR/GBP: Soon time for a breather. The decline continued at an unchanged pace yesterday. However as we now are trading in close proximity to the Bwave low there’s clearly a growing risk that at least a minor reaction will be seen before breaking below it. Once the Bwave low has been violated the confirmation will be given for a continued decline below also the March low.
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