The following are the intraday outlooks for EUR/USD, EUR/JPY and GBP/USD as provided by the technical strategy team at SEB Group.
EUR/USD: Next key support is 1.0819. The decisive break and close below 1.0916 has increased the probability that we actually have put a correction high in place and that we hence have resumed the underlying bear trend. More pieces of bearish information will be given when passing 1.0819 and 1.0670. For today however there’s a clear risk that we will see some short covering ahead of the weekend and a move up into the low – mid 1.09’s would be too surprising.
EUR/JPY: Slowly approaching the 133’s. The pair continued the slow descent yesterday. Allow for a minor reaction higher (max 135.50) before continuing the southern drift. Next week it is probably accurate to expect a test of the still very important 133-area.
GBP/USD: Targeting the low 1.57’s. The ongoing correction from beneath the ma bands should now be in its latter stages. Ideally the 1.5709 equality point should mark the end to the current rise. So short term look for some additional strength but caution urged as bearish forces soon seen coming into play.
