The USD has room for gain against its major counterparts, according to the latest technical assessments from Bank of America Merrill Lynch.
Here are the levels to watch:
Here is their view, courtesy of eFXnews:
USD/JPY is poised to a breakout with a bullish setup is currently in the making,says Bank of America Merrill Lynch.
“The multi-month contracting range looks to be drawing to a conclusion as the decline from 120.86 counts as the final leg of this admittedly complex Triangle,†BofA notes.
“A break of 120.86, says the uptrend is resuming, while a break of 122.02 confirms a return to trend for 124.16/124.59 ahead of 128.45,†BofA projects.
“Back below 118.33 invalidates the bullish setup and points to a larger range trade than anticipated,†BofA adds.
Turning to EUR/USD, BofA advises bulls to watch the 55d average around 1.0992.
“While we remain long term EUR/USD bears, targeting 1.0283/1.000, in the near term the pair is stuck in a choppy corrective range between 1.0462 (Mar-16 low) and the 55d avg (now 1.0992),†BofA notes.
“Bulls need a sustained break of the 55d to point to a greater correction than anticipated, exposing the 1.1261/1.1534 February congestion zone,†BofA advises.
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