FXDailyDose – November 13, 2013

November 13, 2013 in FX Daily Dose

FX Daily Dose

Currency pair Near-term Outlook Comments – Overall Outlook
USD/JPY bullish USD/JPY broke over 99.67 resistance and went as high as 99.80 before experiencing the psychological pressure of 100.00. The resistance took it down to 99.42. If support comes in the range of 99.20/99.25 then a retest of 99.80 is expected. A break above 99.80 should bring further gains towards 100.20. Our outlook stays bullish for the near-term based on the bullish signal from daily ichimoku, the break of 200-day moving average and also the break of the 6 month old trend line resistance. Please check the previous updates as well as this USD/JPY chart alert for the details. However if resistance at 99.80 holds and the support of 99.20/99.25 fails then further consolidation towards 98.80 support will be expected.
EUR/USD Neutral For last 2 days we had been mentioning about the possibilities that EUR/USD may have some upward correction towards 1.3438 to 1.3449. The price moved up that way and even broke above this resistance to touch 1.3456 (7 pips more). We stay neutral initially. Further consolidation towards 1.3488 cannot be ruled out but overall outlook stays bearish for the near-term. If resistance near 1.3488 holds and a break below 1.3341 takes place then drop towards 1.3265 support will be expected.
USD/CAD bullish Our outlook for USD/CAD becomes mildly bullish for the short-term. Though the price has still not been able to sustain above the psychological level of 1.0500 but the subsequent highs are getting higher. the first was 1.0497, the next attempt touched 1.0503 and the third 1.0508. We expect further gains towards 1.0540/1.0545 if support at 1.0463 holds. Please note that 1.0463 had proved to be a resistance and then it turned into support two days back. Any break below 1.0463 should find a support and recovery from 1.0440. This mildly bullish outlook will be neutralized if any break below 1.0398 takes place.
CAD/JPY bullish On one hand a double top is in place on weekly chart but on the other hand CAD/JPY has been continuously finding support over 92.17. Four attempts to break below have failed during past four and a half months. However, on the upside, during part one and a half months, the pair has failed 3 times near the 200-day moving average resistance. The current 200-day moving average is at 95.51 which is 72 pips above the current price. Though we stay neutral initially but overall we are mildly bullish. The first resistance expected is at 95.22 and then the 200-day SMA. A break above these resistances should bring further gains towards 96.80. This outlook will start neutralizing if the expected support in the range of 94.23 to 94.41 fails.
GBP/USD Bearish The near-term outlook had turned bearish for GBP/USD, with the recent break of the support after the resistance of 4 year old trend line held firm. Please check the chart for this break at this GBP/USD alert. Some support should come near the recent 1.5854 but below that we will expect further drop towards 1.5740 or more. Intraday resistance is expected below 1.5965.
EUR/GBP Bearish Our overall outlook remains bearish for EUR/GBP but initially we stay neutral. Yesterday we had indicated the possibilities for upward moves towards the resistance zone of 0.8416 to 0.8440. The prices moved that way and then went as high as 0.8463. We expect a resistance at 0.8477 and a fall with that but any failure of that resistance may bring some further upward consolidation. On the downside the first support should come at or above 0.8396.
EUR/AUD Neutral Yesterday we had indicated about the possibilities that EUR/AUD might move upward to 1.4385. The upward move came and the pair even moved as high as 1.4484. the pair has been failing to sustain above the psychological 1.0450 for over 2 months and hence the current price is in a strong resistance zone. overall we expect a break above this resistance soon. Though initially we stay neutral but the neat-term outlook has turned mildly bullish. The bullish outlook will get further confirmation if a break above 1.4560 takes place. Such a break should result into a jump towards 1.4720 or more.
USD/INR Neutral Yesterday we had mentioned resistance is the range of 64.20 to 64.45. The resistance came 3 pips below the range at 64.17. Further upward moves may take place as long as support holds over 63.05. A break below 63.05 would be the first indication of a possible near-term topping and such a move should bring further decline towards 62.30 or more. We are staying neutral for USD/INR. Overall we expect some extended sideways moves between 60.40 and 64.60 in the near future.

Check previous entries of FxDailyDose.

Comments are closed.