FX Daily Dose – December 12, 2013

December 12, 2013 in FX Daily Dose

FX Daily Dose

Forex Daily Dose presents a EUR/AUD, EUR/GBP, USD/INR, USD/CAD, EUR/USD, GBPUSD, USDJPY and AUD/JPY for the immediate and medium-term outlook. Please note that the daily outlook is for current pairs in focus and we may add or remove some of the currency pairs accordingly.

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Currency pair

Near-term Outlook

Comments – Overall Outlook

USD/JPY

bullish USD/JPY had found support just over 22-day EMA during the previous fall on during December 3rd to 5th. The same pattern continued this time when the support came again just above the 22-day EMA. The continuity of this pattern makes the case for further gains but the first indication of that would come with any decisive break above 102.81/102.94 resistance zone. We are staying neutral till a break of this resistance zone takes place. If such a move takes place then a retest of 103.37/103.39 will be expected. A break above that may take the pair to target the strong resistance of 103.73. On the downside any failure of 102.15 support will turn the focus downward for a retest of 101.61 or below.

EUR/USD

bullish EUR/USD had briefly touched 1.3810 but since then resistance is maintained below 1.3800. This is the only factor which is neutralizing the immediate bullish outlook but still we remain in favor of some more gains as long as the support in the range of 1.3740 to 1.3755 holds.  With this support holding a retest of 1.3832 and then possibly further gains towards 1.3858 will be expected. Any failure of this support should bring a stronger support in the range of 1.3705 to 1.3721.

USD/CAD

Bearish USD/CAD has been moving exactly as we had mentioned during the previous update. We had indicated that we expected a break below 1.0622 and then a move towards a stronger support range of 1.0580 to 1.0590. The price has touched 1.0580. Now we expect that even the support of 1.0580 may fail and further drop towards 1.0555/1.0559 should take place. In fact the fall may even get extended to 1.0525. This outlook for further downward consolidation will remain in place as long as the price action finds resistance at 1.0620.

CAD/JPY

bullish CAD/JPY had dropped strongly and had broken the support of 96.93 but found a very strong support at 96.30 and recovered to 97.05. We remain in the favor of further gains for a retest of 97.27 first and then possibly the resistance zone of 97.48 to 97.66 of September 19th and July 24th respectively. However, considering the fact that the pair is in a very strong resistance zone and had not sustain above 97.09 even after breaking over it, we will be cautious. On the downside the support should hold over 96.30 but any failure of that support will turn the focus downwards towards 95.80 first.

GBP/USD

Neutral GBP/USD had broken both the support levels which we had mentioned during the previous update. However further recovery is expected as long as support holds at or above 1.6293. However any failure of that support may bring further consolidation towards 1.6210 to 1.6220 range. We stay neutral initially though we expect a test of 1.6500 sooner or later, probably sooner.

EUR/GBP

bullish EUR/GBP had hit the target (0.8415 to 0.8425 range) we had indicated during the previous update. The pair touched 0.8431before a slight drop to 0.8418. We now expect some more upward consolidation towards 0.8455/0.8460. This outlook will be intact as long as the support in the range of 0.8380 to 0.8390 holds. In case this support fails then another support will be expected at 0.8350. However in case of further upward moves, we will expect a very strong resistance below 0.8480 because of the approaching 85.00 psychological level.

EUR/AUD

bullish EUR/AUD did not only hit the 1.5235 target which we had indicated during the previous update but went as high as 1.5306. The outlook stays bullish and we, now expect a further gains towards 1.5420 first and possibly a retest of 1.5462 of May 2010. On the downside the first level of support is expected at 1.5180. In case that support fails then further consolidation towards 1.5140 or more will be expected.

USD/INR

Neutral USD/INR hit the target of 61.40 resistance which we had indicated during the previous update. The pair went as high as 61.58 before finding the resistance below the second level of the resistance mentioned in the previous update i.e. 61.70. We stay neutral till there is no break of the support at 61.11 and resistance in the range of 61.66/ 61.70. Overall we remain in the favor of further drop and the only thing which is sustaining USD/JPY from further downward consolidation is the psychological support of 60.00.

Check previous entries of FxDailyDose (The short URL, for your convenience, is http://bit.ly/FXDailyDose).

You may also check the daily and weekly analysis for 8 currency pairs on the following pages:

Daily Analysis:

  1. EUR/USD daily analysis
  2. USD/JPY daily analysis
  3. GBP/USD daily analysis
  4. USD/CHF daily analysis
  5. AUD/USD daily analysis
  6. EUR/JPY daily analysis
  7. GBP/JPY daily analysis
  8. AUD/JPY daily analysis

Weekly Forex outlook

  1. EUR/USD outlook
  2. USD/JPY outlook
  3. GBP/USD outlook
  4. USD/CHF outlook
  5. AUD/USD outlook
  6. EUR/JPY outlook
  7. GBP/JPY outlook
  8. AUD/JPY outlook

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