US ADP (Private sector employment) came in at 253k vs 180k expected. A strongly US dollar positive report.
More data on tap including US Manufacturing PMI.
EUR/JPY’s near term outlook is Last week it failed to clear the 125.81 May high, and now side lined and holding its 20 day ma at 124.40. We would allow for slippage to 122.56 last weeks low and potentially the 121.05 55 day ma, but suspect that it will hold in this vicinity. Above the 125.81 recent high will target the 2016-2017 channel at 127.13.
A mixed bag in Cable charts.. The market has sold off to and is currently seeing a rebound from 1.2776 the 6th December high, it has
not overcome any resistance of note and for now we will maintain a neutral to negative bias. Rebounds are indicated to terminate circa
1.2910 ahead of a potential move back to 1.2582/87, the 200 and 55 day ma and the 1.2366 the 10th April low. A break above 1.2910 could signal a move to test 1.3000 again.
EUR looking constructive on the charts.. The Euro’s consolidation phase looks complete and the market is well placed to test the recent high at 1.1268 and the 1.1300 November 2016 high. It will remain bid while above the near term uptrend at 1.1035. Rallies will find interim resistance at 1.1268 and 1.1300. Above 1.1300, the market has potential to reach the highs from mid 2016 circa 1.1429 and the two year resistance line at 1.1474
AUD on the charts.. We have seen a break below near term support at the .7465/35 lows which would imply the upside bias turning. A violation of the .7300 support zone which includes the 76.4% retracements of the rally from the December low would confirm a deeper decline into the medium term range lows
USDJPY on the charts.. While the near term pause above last week's low continues to develop, the impulsive decline below this month’s high is in line with the bearish shift and increased potential for a deeper pullback. The initial focus has shifted back to the 109.70/60 zone - 76.4% retracement and 200-day moving average and where some pause/retracement is due. Note that a break back above the 113.10/15 area is now necessary to reassert the upside bias.