Despite Draghi’s positive tone and optimistic forecasts for the Eurozone the details of QE implementation were enough to see another EUR selloff and subsequent USD rally. We maintain or bullish view on the USD vs EUR,GBP and JPY.
{EU} EURUSD Lower => ECB yesterday finally pushed the pair down through 1.1000, and although we closed higher the great psychological level on the downside has been breached. Resistance will now come in at 1.1100 and 1.1150, while on the downside we have no more strong option barriers and a very light orderbook, so the psychological levels with prevail for the moment.
{GB} GBPUSD Lower => We maintain our bearish preference we look to fade GBP strength vs the USD with 1.5300 resistance point on the topside, yesterday’s lows 1.5195 support.
{CA} USDCAD Neutral => On the short term, we have a neutral stance but for Q2, we still like the pair higher. Key technical levels: support at 1.2405-10 (this week’s double low) and first resistance at 1.26.
{JN} USDJPY Higher => We like the pair higher with levels to watch: the resistances to break remains firstly 120.27 (weeks highs) then 120.48, while on the downside, it’s key to hold above 119.40 (week’s lows at 119.38).