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What Barclays sees next in the FX market

Views on the majors

EUR/USD: We are overall bearish and would prefer to fade upticks against resistance in the 1.1245 area. A move below our initial downside targets near 1.1100 would open the 1.0990 area.

USD/JPY: No change. We are bearish against the 111.90 range highs and look for a move lower towards initial targets near 108.20. Below 108.20 would signal further downside towards our next targets in the 106.40 area and then 105.20.

EUR/CHF: We are turning bullish as Wednesday's "doji" candle signals that the recent down-tick is losing traction. We would look to buy dips against the 1.1015 range lows. A break above 1.1130 would open our targets near the 1.1200 year-to-date highs.

AUD/USD: No change. Small signs of seller capitulation signal a breather within the context of the overall bearish trend. While price closes below 0.7255, the 200-dma, we look for a move towards 0.7040 and then the 0.6825 year-to-date lows.

NZD/USD: Our bearish view is encouraged by the move to new lows. We are looking for further downside towards targets near 0.6665 and then 0.6545.

USD/CAD: Wednesday's slow close endorses the succession of small topping candles on the daily plot and encourages us to re-establish a bearish view. Our downside targets are towards 1.2895 and then the 1.2770 range lows.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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