EUR/USD: Bullish. Approaching major resistance at 1.1270, clear break would signal mid to long-term bottom is in place.
EUR/USD rallied strongly this week and the up-move is quickly approaching the major mid to long-term resistance at 1.1270. This level is the middle of the weekly trading envelope and if EUR can close above this level by end of today’s NY session, it will be the first time it has done so since October 2014. The middle of the envelope was tested in August last year (just above 1.1710) but the closing was below this crucial level. A clear break above this level would be a strong signal that EUR has found a mid to long-term bottom and the upside pressure will likely continue to build in the coming weeks and possibly months.
For now, 1.1240/70 is a strong resistance zone but we would target a move to 1.1495 near term if there is a clear break above this zone.
GBP/USD: Neutral: Only daily closing above 1.4680 would indicate start of a bullish phase.
There is no change to our view wherein only a daily closing above the major 1.4680 resistance would indicate the start of a sustained up-move in GBP.
In the meanwhile, the undertone still appears to be slightly positive as long as the strong support at 1.4490 continues to hold.
AUD/USD: Bullish: Target a move to 0.7260.
We shifted to a bullish stance yesterday targeting a move to 0.7260. Currently, there is no change to the view.
A break above 0.7260 would shift the focus to 0.7330.
NZD/USD: Bullish: Target a move to 0.6800.
We turned bullish NZD yesterday and the immediate target at 0.6740 was quickly met (high of 0.6747).
The rally appears to be running ahead of itself and from here, those who are long should take some profit near 0.6800.'
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