Major currency pairs are looking for a new direction amid a slew of political news. What levels should we watch?
Here is their view, courtesy of eFXnews:
EUR/USD: Neutral (since 05 Mar 18, 1.2335): Weak undertone is stabilizing.
In recent updates, we expected EUR to “remain on the back foot unless it can move above 1.2350â€. The recent weak undertone is beginning to stabilize as EUR staged a robust recovery from last Friday’s 1.2212 low. The odds for downward extension towards last month’s 1.2153 low have diminished and a while a move above 1.2350 would not change the neutral outlook, it would indicate that EUR has moved into a higher sideway consolidation range.
GBP/USD: Neutral (since 07 Mar 18, 1.3895): Scope for GBP to test the strong 1.4200 resistance.
The continuing short-term strength came as a surprise as GBP edged above the top of our expected 1.3935/1.4160 consolidation range yesterday to reach a high of 1.4163. The improved undertone suggests that there is scope for GBP to test the next strong resistance at 1.4200 but at this stage, we do not anticipate a sustained move above this level (next resistance is at last month’s 1.4244 peak). In other words, the current short-term GBP could lead to a move towards 1.4200 but any up-move is unlikely to be sustained.
USD/JPY:Â Neutral (since 21 Feb 18, 107.35): USD is expected to trade sideways.
The outlook for USD remains mixed and we continue to hold a neutral stance. We expect further erratic trading from here, likely within a broad 106.20/107.90 range.
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