FX Daily Dose – November 7, 2013

November 7, 2013 in FX Daily Dose

FX Daily Dose

Currency pair Near-term Outlook Comments
USD/JPY bullish USD/JPY again broke above the daily Ichimoku cloud but is still struggling below the 200-day moving average. Our views remain exactly same as what we had mentioned in the previous FXDailyDose of yesterday.
EUR/USD Bearish EUR/USD broke below the first resistance of 1.3524 which we had mentioned yesterday and touched 1.3547. We had indicated that if a break over 1.3524 takes place then a move towards 1.3565 can be expected. The current price action is finding a resistance at 55-day EMA. We still expect a drop but if there is a decisive break above 1.3560/1.3580 range then the short-term outlook will change from bearish to neutral. If resistance holds in the range of 1.3560/1.3580 then further fall will be expected towards 1.3340 to 1.3389 support zone.
USD/CAD Neutral Our outlook for USD/CAD remains same as what we had mentioned in yesterday’s FxDailyDose. The pair found resistance below the indicated 1.0495 and dropped from 1.0461. Current price action is finding support just over 22-day EMA. We will repeat what we mentioned yesterday that in case the support of 1.0398 fails then a downward move towards the support zone of 1.0320 to 1.0360 will be expected. We stay neutral.
AUD/JPY bullish AUD/JPY inched higher to 94.16. Our outlook stays same as yesterday. A break over 94.20 resistance should take it towards 94.60 to 94.85 resistance zone. The psychological pressure of 95.00 may bring some fall but as long as the support over 92.66 holds we expect a break over 95.00 sooner or later. Please check this AUD/JPY alert. The support at 92.66 is critical for this outlook. Any break below 92.66 may bring further fall towards the support zone of 91.40 to 91.80.
GBP/USD Neutral GBP/USD found resistance below 1.6120 as we had mentioned in yesterday’s update of FXDailyDose. Our outlook remains same that if this resistance holds then a drop towards 1.5894 to 1.5905 is expected. However if there is a decisive break over 1.6120 then further gains towards 1.6180 will be expected. The support at 1.5894 is critical and any break below that should bring deeper consolidations towards 1.5740 or more.
EUR/GBP Bearish Some more consolidation may come but resistance is expected in the range of 0.8444 to 0.8451. Our outlook remains bearish for EUR/GBP. If the mentioned resistance holds and if there is a break below 0.8374 then a retest of 0.8332 support will be expected. 0.8332 support is very critical and in case that does not hold then deeper decline towards 0.8225 or more may come.
EUR/AUD Neutral EUR/AUD should find support over 1.4124. This is not only the previous support zone but the price action is above 200-day moving average support. The current 200-day moving average is at 1.4077. In case there is a break below 1.4124 then a move towards 1.4077 may take place, however, we remain neutral.
USD/INR bullish Some more upward gains are expected but resistance should be faced at 62.94. If this resistance breaks then further gains towards the resistance zone of 63.57 to 63.65 should come.

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