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EUR/USD And GBP/USD Outlook Remains Bullish

ByIan Copsey
Published 09/05/2013, 02:33 AM
Updated 07/09/2023, 06:31 AM

Good progress seen yesterday albeit very slow. However, in terms of the immediate structure the dollar weakness seen in EUR/USD and GBP/USD was pretty much as expected. It was just USD/CHF that decided not to play ball. Indeed, there is a chance that USD/CHF will play its own game again today, potentially leading to a minor new high. But, there doesn’t seem to be much room on the upside following yesterday’s deeper correction, so in terms of short term risk-reward the dollar downside does hold more benefit.

For the EUR/USD and the GBP/USD the outlook remains overall bullish for these two, thus extending the dollar bearish bias for now. If there is any risk it will be a brief flirting with the downside in both of these before their rallies extend.

When talking of dollar weakness it was the Aussie that surprised with that robust rally that took both hourly & 4-hour momentum right up high. And, if anyone hollers “overbought” tell them that means bullish. Thus, while corrections are possible, it seems as if we shall see further upside progress today again. However, I doubt it will be quite as robust as yesterday.

USD/JPY took a day off work and put its feet up. Disappointing, but the sideways consolidation appears to have been a triangle so look for gains again today. The upper target I have been suggesting seems to be very much on the cards today. In EUR/JPY the consolidation extended a little more but then EUR/USD dragged it out of the congestion area to see further gains. This should continue today. However, just like USD/JPY there is a fairly clear target area from where we should see a correction.

Overall, I’m pretty comfortable with the way things are going and barring any catastrophe I expect quite an orderly day today.

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