NEWS / Monetary Policy

Daily Technicals: Look to build Euro long positions

by Marc Spaelti

EURUSD: Friday saw the EURUSD increase its gains with a move to 1.2790. This is the 62% retracement-level of the June fall, expect some good resistance here early in the week. The Euro should correct its strong surge since Thursday, a pullback to 1.2735 or even 1.2675 is possible, those are the buy levels from fresh medium-term longs towards 1.29 later in the week. Strong initial resistance 1.2790, additional at 1.2815 and 1.2840 minor, 1.2885 strong. Initial support at 1.2765, strong 1.2730, key-support 1.2670 today.

GBPUSD: Cable has reached the 1.85 level, since then it has pulled back to 1.8450. There is room for further upside, but strong resistance at 1.8505, 1.8530 and key at 1.8580 will be tough to break. Look to take profit on long positions, potential buyers may want to wait for a deeper pull-back to 1.8350, key support, minor support 1.8425 and 1.8380.

USDJPY: The week has closed underneath of the 114.65 key level, now key resistance, with additional strong resistance at 114.85 should top the market. Expect to move on lower, 113.85 next, 111.60 should be achieved this week, additional support at 113.15 and 112.70. Should the pair hold and retrace to close the day above 114.65, we may see a short-lived peak to 115.60 max, sell such rallies.

USDCHF: The 1.2260 level was tested and gave way for a low weekly close. This is bearish USD, the pair is set to stretch its low into the 1.21??™handle soon. Key resistance 1.2260, strong at 1.2310 must top the market, a breech there triggers our stop. For now we are short, look to advance to 1.2200 today, next support 1.2160, target 1.2120.

@14.00GMT US Manufacturing ISM June