Tech Targets: EUR/USD, GBP/USD, AUD/USD, NZD/USD, USD/JPY - UOB

EUR/USD: Neutral: Only clear break above 1.0995/00 or below 1.0775/80 would indicate start of a directional move.

There is not much to add as EUR/USD continues to trade quietly albeit with an improving undertone. EUR/USD extended its recent gains without testing the 1.0850 support first but as expected, failed to move clearly above 1.0940 (overnight high of 1.0940). While the undertone remains positive, upward momentum is patchy at best.

At this stage, only a strong and impulsive break above 1.0995/00 or below 1.0775/80 would indicate the start of a sustained directional move. In the meanwhile, we continue to hold a neutral view.

GBP/USD: Neutral: Rebound has scope to extend to 1.4565.

We continue view the current movement as a corrective rebound that has scope to extend higher to test the major 1.4565 resistance.

Overall, this pair will remain underpinned in the coming days unless there is a move back below 1.4240 in the next few days.

AUD/USD: Neutral: Outlook still remains neutral.

As we have pointed out several times in recent updates, despite the short-term AUD/USD strength, only a daily closing above 0.7110 would shift the current neutral outlook to bullish.

The quick drop from the high of 0.7130 yesterday is a clear sign that the recent short-term upward pressure has eased but it is too early to expect a sustained down-move. In other words, we remain neutral for now.

NZD/USD: Neutral: Too early to expect a sustained rally.

NZD/USD edged above the major 0.6555 resistance yesterday with a high of 0.6558. While momentum is improving, it is too early to expect a sustained up-move. Even a clear break above 0.6555 is expected to encounter very strong resistance near 0.6605/10.

That said, the short-term undertone is clearly positive and this pair is expected to remain underpinned in the next few days.

USD/JPY: Neutral: Those who are long to take partial profit at 122.00.

While we were right in anticipating a short-term top, the sharp drop that took out the major 120.00 support was unexpected. The down-move appears to have scope to extend lower but a sustained move below 119.40 appears unlikely. 

The outlook for this pair is viewed as neutral and the current movement is likely the early stages of a broad and choppy consolidation phase. Key levels are at 117.65 and 121.70.

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