EUR/USD: Neutral: Recovery to extend to 1.0825/30.
It took a while but EUR finally managed to move above 1.0800 and hit an overnight high of 1.0819. This level is just below the solid 1.0825/30 resistance and as indicated in recent updates, is unlikely to yield so easily. That said, in view of the strong daily closing yesterday, a move above this level is not ruled out but shorter-term indicators are severely overbought and the odds for a move above last December high of 1.0870/75 are not high. On the downside, support is at 1.0745 but only a move back below 1.0715
AUD/USD: Neutral: In a 0.7600/0.7730 range.
AUD eked out a fresh high of 0.7750 but was unable to hold on to its gain. The subsequent sharp drop from the high indicates that the upward pressure post-FOMC has eased off. A temporary top is likely in place at 0.7750 and AUD is deemed to have moved into a sideway-trading range. That said, the immediate bias is for a probe lower towards the low end of the expected 0.7600/0.7730 consolidation range.
NZD/USD: Neutral: In a 0.6950/0.7090 range.
The rebound target of 0.7085 that was first highlighted last Thursday was exceeded as NZD hit a high of 0.7090 yesterday. However, the subsequent sharp drop from the high was unexpected. An interim top is likely place and NZD is deemed to have moved into a consolidation phase, likely between 0.6950 and 0.7090.
USD/JPY: Neutral: Oversold but room for extension to 111.05/10.
The sudden acceleration lower yesterday that took out the strong 111.65/70 support was unexpected. The decline is severely oversold especially from a shorter-term perspective but there is room for further extension to 111.05/10. Key short-term resistance has moved lower to 112.50.
Source: United Overseas Bank Global Economics & Markets Research