The dollar continues in failing to make gains versus the India Rupee meeting resistance at the 60.40, a Fibonacci retracement level, says Chris Williams at Soc Gen. Along with a weak RSI reading this, he says, provides a good selling opportunity with a target of 58.23 over the coming months.
Cable faces resistance to further gains despite touching a year high at 1.7179 last week, say analysts at ADS Securities. A short-term overbought scenario now exists that could see the pound test 1.7000/15. On the upside, a move through the 1.7177 would still see gains limited in the near-term.
The recent bear market correction in EURUSD hit strong resistance at 1.3700 thereby strengthening the case for a more decisive down move to come, says Walter Zimmermann at United-ICAP. A decisive move below 1.3497 will now pave the way for a significant decline.
An oversold Brazilian Real is set for a bounce although the longer-term outlook remains bearish, says George Davis at RBC Capital Markets. Support at 2.1832 and 2.2000 is in place after the major trend reversal below 2.2692 in March but resistance at 2.2646-2.2886 will present selling opportunities.
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.