Technical Overview of EUR/USD and USD/JPY Currency Pair

EUR USD

EUR traded higher against USD and closed at 1.1021
• Early bounce on US data gives some relief to longs
• Pair heavy on safe haven flows but holds above 61.8 Fib of 1.0879-1.1180
• Daily RSI diverges & bull hammer forms, daily techs warn shorts
• Monthly RSI still falling, says downside momentum could resume
• Global growth concerns, soured risk could sink EUR/USD

According to the Analysis, pair is expected to find support at 1.1010 and a fall through could take it to the next support level of 1.0972. The pair is expected to find its first resistance at 1.1132 and a rise through could take it to the next resistance level of 1.1170.

USD JPY

USD traded higher against JPY and closed at 108.39.

• USD/JPY’s breaks key props at 108.50 , close is key
• IMM USD/JPY specs long largely above 108 are at risk on 107.89/99 break
• Treasury yields sliding faster than JGBs, ’20 Fed cuts pricing back in
• USD/JPY’s topping formation reinforced by AUD/JPY’s reversal
• Risk flows could change on a dime if trade deal gets completed, signed

According to the Analysis, pair is expected to find support at 108.57 and a fall through could take it to the next support level of 108.56. The pair is expected to find its first resistance at 108.59, and a rise through could take it to the next resistance level of 108.60.

Important Economic Events of the Week
• USD: Retail Sales m/m
• GBP: Retail Sales m/m
• NZD: Electronic Card Retail Sales m/m
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Author: Mark Burg