FX Daily Dose – December 9, 2013

December 9, 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.

Do not hesitate in contacting us if you wish to know about our view for any specific currency pair.

Currency pair

Near-term Outlook

Comments – Overall Outlook

USD/JPY

Neutral USD/JPY had fallen strongly from 103.37 and then found strong support at 101.62. The support indicates the underlying bullish sentiments but the previous resistance below 103.73 and the current sideways price action are calling to exercise caution. Considering these the immediate outlook stays neutral even though the overall outlook stays bullish. If support holds above 102.32 and a break over 103.37 takes place then a retest of 103.73 will be expected. With any failure of 103.73 resistance, USD/JPY may target 104.10/104/20 also. However if the resistance continues below 103.37 then a 102.32 support fails then deeper consolidations cannot be ruled out.

EUR/USD

Neutral EUR/USD touched 1.3721 during the Asian session when the markets opened on Monday. Since then the pair had fallen into a narrow sideways range below 1.3714. The narrow range is clearly indicating the possibilities of a breakout soon. However the current price action is keeping the immediate outlook neutral. A break over 1.3721 should make the pair to target 1.3770/1.3785 next. However if the resistance holds then some consolidation towards 1.3615/1.3620 may take place.

USD/CAD

bullish USD/CAD has gone been in a sideways mode since the markets opened today i.e. Monday, however if support over 1.0622 holds and a break over 1.0666 takes place then further gains towards 1.0700 or more are expected. In case the support at 1.0622 fails then a strong support will be expected in the range of 1.0580 to 1.0590.

CAD/JPY

Neutral If support holds at 96.60 then a retest of 97.09 will be expected. However the resistance below 97.11, which we had mentioned during the last update is keeping us neutral initially, though the overall outlook is still mildly bullish. For the overall view please check the previous update of November 29th. Any break below 96.60 may bring further consolidation towards 96.20 or more.

GBP/USD

Neutral The overall outlook stays bullish for GBP/USD and we expect a test of the psychological level of 1.6500 sooner and not so quite later. However, considering the resistance faced at 1.6443 which was well below 1.6500, we stay neutral initially. Any break below 1.6293 support may bring some deeper consolidation before a recovery.

EUR/GBP

Neutral EUR/GBP is facing resistance near 55-day EMA. If that holds the it will indicate the end of the upward consolidation and that should result in drop towards 0.8315 or more. Even if the resistance of 55-day EMA fails and the pair breaks above the recent 0.8395, a strong resistance is expected in the range of 0.8415 to 0.8425. Our overall outlook stays bearish but we are neutral initially.

EUR/AUD

bullish If support holds at or above 1.5017 then EUR/AUD should move further upwards to retest 1.5163 and then possibly towards 1.5235. Our immediate outlook stays bullish for EUR/AUD.

USD/INR

Neutral USD/INR moved the way we had indicated during the last update and even broke the support of 61.50 to go as low as 60.64. We expect some more weakness in the near term but support at 60.54 may prove to be critical and hence our immediate outlook is neutral for USD/INR. We will also repeat what we have been mentioning previously that USD/INR is stuck between the psychological levels of 60.00 and 65.00 after failing to test 70.00. Note: Within next 6 months we expect a break below 60.00 to test 58.74/58.80 level.

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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