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Outlook for FX and precious metals

USD/JPY’s strong resistance at 110.50/60 is the key to direction today. Short positions need stops above 110.80. A break higher targets 110.95 with a gap to fill at 111.05. There’s a good chance we’ll reverse from here.

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Failure to beat 110.50/60 targets minor support at 110.30/25, then today’s best support at 109.90/80 for profit-taking on any remaining shorts. Long positions need stops below 109.70. A break lower targets minor support at 109.50/55 and 109.30 before the 109.04/00 low.

EUR/JPY breaks strong support at 122.95/85 for a negative signal targeting 122.60/55, then 122.20/10. Below 122.00 look for 121.70/60, perhaps as far as 121.30/25.

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The first resistance is at 122.95/85 but a move above here is more positive, targeting 123.25/15 and then 123.50/60. On further gains look for a selling opportunity at 123.85/95, with stops above 124.05.

EUR/USD holding first resistance at 1.1185/95 targets 1.1135/30, before the April low at 1.1115/10. Further losses would test one-and-a-half-year trendline support at 1.1050/40.

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There is strong resistance at 1.1185/95. Place stops above 1.1205. A break higher would target strong resistance at 1.1230/40, in which case place stops above 1.1255.

USD/CAD has bounced to strong resistance at 1.3440/50. A break higher targets 1.3485/1.3495 before April highs at 1.3510/20, so a break above here is a buy signal.

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Failure to beat strong resistance at 1.3440/50 targets 1.3425 and good support at 1.3380/70. A break below 1.3350 targets 1.3330/25.

AUD/USD faces first resistance at 6890/95 before a selling opportunity at 6910/15 with stops above 6925. A break higher would be a buy signal targeting 6940/45, perhaps as far as 6963/66.

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A move below 6850 is a sell signal in the bear trend, targeting 6820/15 and 6795.

For NZD/USD the outlook is negative as we hit the next target of 6500/90. Below here look for 6470/60. Further losses re-test important support at the 2018 low of 6432/22.

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Gains are likely to be limited in the bear trend with first resistance at 6515/20. There is strong resistance just above here at 6545/50. Place stops above 6560.

The outlook for GBP/USD remains negative despite severely oversold conditions. Gains are likely to be limited with first resistance at 1.2700/10, and second resistance at 1.2750/60. A move below 1.2620 targets 1.2605/00 and 1.2580/70.

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Meanwhile, GBP/JPY breaks the recent 139.60/50 level targeting 139.10/00 and minor support at 138.50/40.

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Gold traders should try short positions at 1275/77 with stops above 1279. There’s another selling opportunity at 1282/83, with stops above 1285. A break higher, however, is more positive, targeting 1288/89 and then 1292/93.

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Failure to beat 1275/77 is a sell signal targeting the 1266/65 low. A break below here is another important sell signal targeting strong support at 1257/55. Try long positions with stops below 1253.

Silver has consolidated its losses but there is no strong buy signal despite oversold conditions. We are holding 1433/30 but a move below here targets 1423/20 and 1405/00.

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Gains are likely to be limited with first resistance at 1455/58, before a selling opportunity at 1472/75, with stops above 1480.

Jason Sen

Technical Analyst & Trader

For more information and trading education visit Intertrader

The content of this article is the personal opinion of the author and not Intertrader. You should under no circumstances consider the information and comments provided as an offer or solicitation to invest. This is not investment advice. The information provided is believed to be accurate at the date the information is produced.

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