The following are the latest technical setups for EUR/USD, USD/JPY, GBP/USD, and AUD/USD as provided by the technical strategy team at Credit Suisse.
EUR/USD: EURUSD has as expected removed price support at 1.2605, and stays on course retesting the October 2014 low and 78.6% retracement of the 2012/2014 uptrend at 1.2500/2460. While a fresh hold here should be allowed for, our bias remains for an eventual break in due course to expose the lower end of the medium-term range at 1.2227/00.
Resistance moves to 1.2631/40, then 1.2723, with 1.2771 needing to cap to keep the immediate risk lower. Above can see a move back to 1.2841/46.
CS booked profit today on its latest short EUR/USD at 1.2460.
USD/JPY: USDJPY has surged higher post the BOJ, taking out the year’s highs at 109.91/110.09 as well as the August 2008 peak at 110.67 reaching our core target at 111.60 – the 50% retracement of the entire 1998/2011 decline. Another break is expected in due course to see 113.76.
Support moves higher to 110.75. then 110.16/08, which we look to now try to hold.
CS booked profit on its latest long USD/JPY on Friday at 110 and went long again at 111.60 targeting 113.75.
GBP/USD: GBPUSD extended weakness below the 1.5994 price support level. This turns the immediate focus back on more important levels at the October price lows at 1.5875/54. Capitulation through the latter would see a move on to the top of the 2013 base and 61.8% retracement of the 2013/2014 uptrend at 1.5752/22. We would look for a fresh attempt to establish a base here.
Near-term resistance shows at 1.6088/95, then 1.6162. Above 1.6186 is needed to warn of a base to target the 1.6228 price level next.
CS holds long GBP/USD targeting 1.6382.
AUD/USD: The break below .8755/49 should ignitie bearish thoughts for .8719 initially, ahead of .8687/76, and then a retest of the critical .8652/43 support zone ‒ the recent lows and 38.2% retracement of the entire 2001/2011 bull market. – which we would expect to act as a stronger support.
Resistance shows at .8882/84, followed by .8900/33 – the October peak and 38.2% retracement resistance – which we would look to ideally cap any near-term strength. However, a break higher can warn of a deeper recovery towards .9023.
CS holds a short AUD/USD from .8890 targeting .8700.
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