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Euro May Recheck Highs, While Aussie Is Cushioned By Support

Published 08/04/2014, 03:12 AM

EUR/USD: Could recheck the high-1.34s

Last week ended with a potentially bullish 'Doji' candle for the period. Near-term price action also show some upside impulse and if bullishly distancing the still ascending 8day 'Tenkan-Sen' (1.3425), extension would become more likely towards resistance in the high 1.34s, including the slower 21day 'Kijun-Sen', now at 1.3505. Current intraday stretches are located at 1.3370 & 1.3465.

EUR/USD Daily Chart

EUR/GBP: Buyers show initiative, targets 0.8034

Buyers showed notable initiative late last week. Fri's mid-body point at 0.7957 should form support and once a cluster of resistance ref around 0.7980/90 is taken out, the bar should be lifted towards a late Jun reaction high at 0.8034 (with some resistance of 0.7996/09 to observe on the way). More support is found at 0.7940/30. Current intraday stretches are located at 0.7940 & 0.8000.

EUR/GBP Daily Chart

EUR/JPY: Sellers response noted at Fibo level

Sellers responded at at a short-term 161.8 % Fibo projection ref (138.07) Fri. This may inspire some selling first thing, but with presumably good support at 137.31/20 selling shouldn't last long (support already at 137.57/52 could be enough to keep sellers at bay). A move through 138.07 would target 138.95, with refs at 138.30 & 138.75 to observe. Current intraday stretches are located at 137.25 & 138.25.

EUR/JPY Daily Chart

AUD/USD: Cushioned by the 0.93 support

Current unable to hold on to moves below the 0.9300 support the pair has entered what we label as a minor congestion / correction phase. There is room for some short-term additional gains towards 0.9363 but probably not much more. In the bigger picture the topside failures (above 0.9460) and the monthly bearish engulfing candle clearly impose downside risk.
AUD/USD Daily Chart

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