Intraday Outlook For EUR/USD, GBP/USD, USD/JPY, AUD/USD, S&P 500 – FXM


The following are the intraday outlooks for EUR/USD, GBP/USD, USD/JPY, AUD/USD and S&P 500:

EUR/USD1 Following the strong recent declines, the EUR/USD is trying to recover some lost ground, after the pair failed to break the psychologically important level of 1.3500. Upside gains may be capped at 1.3590. Only a break-out above 1.3670, the last pivot high, will see the Euro bulls regain momentum. Support exists in the 1.3476-1.3502 region; the 38.2% Fibonacci expansion, a break below which may see the pair dip to the 50% level at 1.3431. On the four hourly chart, support is in the 1.3505-1.3520 range, from where the EUR/USD has staged a smart bounce-back, following the appearance of a second Bullish Engulfing pattern. Strong resistance exists at 1.3585, from where prices have reversed several times in the recent past. The emergence of a bearish reversal pattern near this key resistance level would be a good shorting opportunity.

GBP/USD2 GBP/USD is pushing towards its 2014 high near 1.7000 after Bank of England Governor Mark Carney said on Thursday that British interest rates could rise sooner than markets expect. The presence of the psychologically-significant 1.7000 level nearby may prompt some hesitation amongst the bulls, who will enter only on a break to the upside. On the downside, the pair is likely to find support at 1.6900, the break of which will see prices slide to 1.6700, the last major pivot low.

USD/JPY 3 USD/JPY is stuck in a range between 102.77 on the upside and 101.20 on the downside. The pair may extend its recent declines following the formation of a Bullish Engulfing formation. However, shorting may not be appropriate at the current levels, given the strong support at 101.20. For any meaningful downside move to materialize, a substantial close below the support is necessary.

AUD/USD4 Like Like the previous trading session, AUD/USD has once again managed to edge above the strong resistance at 0.9375 in intraday trade. Only a daily close above this level would indicate that bulls have regained control, and are willing to push the Aussie towards the 2014 high near 0.9440. The four hour chart portrays significant indecision amongst traders between the two notable levels of 0.9375 and 0.9400, the break of which will reveal the short-term trend.

S&P 5005 The S&P 500 opened at its intraday high on Thursday and sold off in the final hour of trade. A small bounce-back in the final 20 minutes trimmed losses to -0.71%. The index is 1.08% off its record close on Monday, which is the immediate resistance. On the downside, the index may find support at 1900, from where prices have bounced back multiple times.