NEWS / European Community

Daily Technicals: Euro key support just held

by Marc Spaelti

EURUSD: The Euro turned at 1.2785 and fell a full cent, the 1.2700 support held for the daily close but is under pressure again, intra-day the strong 1.2670 support must hold, else we risk to fall to medium-term support at 1.2550 next. Initial bearish resistance at 1.2735, a break will lead the pair back to 1.2785 and leaves our bullish scenario intact, additional resistance 1.2825.

GBPUSD: Unable to move through 1.85, Cable fell. This being the third test at 1.8370 it naturally broke and dipped to a 1.8310 low. Overnight it recovered to as high as 1.8370, this is strong initial resistance and next at 1.8415 will be tough to break. Bearish in the short-term, Cable should go for a test of the 1.8290 key support, while that holds we will maintain a bullish medium-term view.

USDJPY: The Dollar rallied strongly through 114.65, triggering buy stops as it continued through 115, a high of 115.75 was reached very quickly. Initial resistance at 115.45, next levels are 115.85, strong 116.60 and key at 117.00, the 8-month bearish trend-line. BOJ is holding its rate meeting, risk is for markets to remain very volatile, but after the strong move up, we place a lot of risk in a sharp fall in case those interest rates are being hiked tonight. Initial support 115.25, pivot 114.65, strong 113.85

USDCHF: While the Dollar was biddish, it did not last long above 1.2350 and the recent 1.2250/1.2350 range remains intact. Key support is once again the 1.2260 level, we continue to call for a bearish move if that can be breeched with a lower daily close, target unchanged 1.1950. On top, key resistance is a touch lower at 1.2410, sell any spike.

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