EURUSD Bullish With Caution!
The EURUSD maintained a bullish momentum yesterday, topped at the 1.1857 levels and bottomed at the 1.1767 levels. This development leaves the pair targeting the 1.1895 levels, a halt is likely and may turn lower from here but if this fails to occur, the pair will aim the 1.1935 levels, we might see another hesitation here but a break will pave the way to the 1.2000 levels ahead of the 1.2059 levels.
A failure to break and hold above the 1.1857 levels on a daily closing basis could mean a return to the 1.1767 levels.
On the downside, support comes at the 1.1805 levels ahead of the 1.1767/1.1738 levels (main), below that level will reverse risk to the downside to the 1.1670 levels, further downside, support stands at the 1.1585 levels.
Conclusion: The EURUSD continues to face upside threats above the 1.1738/1.1767 levels.
Today the focus will be on U.S existing home sales followed by FOMC Member Mester Speaks
With GBPUSD breaking below 1.3225 levels, the focus has been turned to the 1.3130 levels, a halt is likely but a cut would open 1.3041 next, buyers may return here but if this fails to occur, further down will be seen to the 1.2908 levels ahead of the 1.2792 levels.
On the upside, resistance remains at the 1.3325 levels, a daily closing back above this level will turn the focus again on the 1.3350/1.3442 levels…
Conclusion: The GBPUSD sees sideways move with possible to break lower.
Intraday outlook: The pair is bearish below 1.3159 levels, support comes at the 1.3100 levels ahead of the 1.3065 levels, a halt is likely and it may turn higher from here, below that level will aim the 1.3025 levels. On the upside, above 1.3159 sees limited gains to the 1.3220/1.3268 levels before another fall…
As long as 111.70/111.33 support holds on a daily closing basis, the USDJPY remains in a recovery mode and further upside could be seen to the 113.20 levels, a halt is likely and it may turn lower from here but if this fails to occur the pair will extend gains to the 113.95 levels, further upside resistance stands at the 115.00 levels.
On the downside, immediate support comes at the 112.50 levels – broken resistance turned support – with a break below here turning the focus back on the 111.70/111.33 levels, below that level will restore the downside momentum and pave the way to the 110.25 levels ahead of the 109.23/109.54 levels.
Conclusion: The USDJPY continues to face recovery threats above 111.33/111.70 levels.