A failed key reversal day last week continues the bearish stance for the euro following the completed double top earlier in the year. According to George Davis at RBC Capital Markets, a close below 1.3484 would signal a shift in sentiment and open the way for a decline to 1.3296.
The underlying trend of GBP/JPY remains very strong with consolidation under the 173.55/65 level increasing the potential for a strong upward breakout, says Martin Jones at Informa Global Markets.
EUR/USD has finally reversed direction and is set for sharp declines, according to Walter Zimmermann at United-ICAP. The currency may find support at the trend line originating from the July 2012 low – around 1.3470 by the end of June. If this line is broken, the minimum target would be 1.2180.
Following the downward correction in GBP/USD, sterling is set to retest last week’s high at 1.6904, according to Max Knudsen at ADS Securities. Since the rally from March low, any dips have usually attracted buyers meaning that targets for the next rally are 1.6904, and beyond that, 1.6998.
After developing bearish reversal signals last week, EUR/USD is set to test new support levels at 1.3725 and 1.3686 according to George Davis at RBC Capital Markets.
The 1.4000 level remains a significant barrier to further upward progress for the euro, say analysts at research firm 4Cast. With the rise since April 2013 lacking conviction, a downside move is forecast for Q2 into Q3.
The euro has once again failed to break through the long term trendline that began in 2008 suggesting a bearish outlook for the currency, says Max Knudsen of ADS Securities. As such, the outlook remains negative whilst the currency remains below 1.3900.
top now seems to be in place for USD/RUB after having been heavily bought since January and the Ukraine crisis, says Chris Williams at Newedge. Having tested its 2009 high at 36.34 on a weekly basis, the ruble should target 34.00 over the next two months.
A close above 1.3818 triggers a bullish long-term trend reversal on a weekly basis for euro/dollar, according to George Davis at RBC Capital Markets.
GBPUSD tested a key resistance level at 1.6747 last week but failed to break it, forming a bearish shooting star pattern in the process, says Andy Dodd at Louis Capital Markets. A break below 1.6618 could the pave the way to 1.6389.