Euro Holds Support Uptrend Remains In Place

By: DailyFX - May 26 08 14:20 GMT

In quiet holiday trade EURUSD held support at 1.5750 level and now looks to retest the 1.5800 figure as it continues to consolidate in a narrow range. We remain bullish on the pair with target to be determined later.

EUR/USD

In quiet holiday trade EURUSD held support at 1.5750 level and now looks to retest the 1.5800 figure as it continues to consolidate in a narrow range. We remain bullish on the pair with target to be determined later.

STRATEGY: Bullish, against 1.5630, target TBD

USD/JPY

We continue to maintain a bearish bias on USDJPY but after plumbing lows at 103.12 earlier in the session the pair has bounced. Further the pair appears to have carved out a series of higher lows suggesting that a near term bottom may be in place which in turn would undermine our bearish thesis. For the time being the trend remains to the downside unless our 104.68 risk is violated.

STRATEGY: Bearish, against 104.68, target TBD

GBP/USD

Cable appears to have run into resistance at the 1.9850 area and continues to consolidate between 1.9850 and 1.9750. However a break below 1.9750 would suggest a rollover top and open the way to the down side at 1.9650 support negating our bullish view.

STRATEGY: Bullish, against 1.9683, target above 2.04

USD/CHF

The Swissie continues to look the most constructive against the greenback on a technical basis. The pair has carved out a fresh low and is in the process of rolling over on the short term charts. 1.0277 is the most immediate swing high below which the pair needs to remain but for now our bearish bias appears justified.

STRATEGY: Bearish, against 1.0572, target TBD

USD/CAD

USDCAD has so far managed to avoid our stop at 9710 as the pair makes a bounce towards the 9900 figure. The rebound however faces its first test of resistance at the 38.2% fibo of 9954 from the most recent 10117-9838 decline and will need to clear that level to break the current downtrend bias

STRATEGY: Bullish, against .9710, target above 1.0324

AUD/USD

The Aussie continues to look extremely constructive as it carves out higher highs on its way to what appears to be parity. However the most recent price action shows tremendous amount of compression in volatility and the pair has now formed a triangle which may signal either a break down or a breakout so careful monitoring of price action is recommended.

NZD/USD

Kiwi is continues to confirm our bullish bias as it maintains its uptrend on the way to our target of 7915.

STRATEGY: Bullish, against .7710, target .7915

DailyFX

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