Intraday Outlooks For EUR/USD, EUR/JPY, USD/CAD, SP500 – SEB

The following are the intraday outlooks for EUR/USD, EUR/JPY, USD/CAD, and SP500 as provided by the technical strategy team at SEB Group.

EUR/USD: Broke decisively lower. The second attempt (with a little help from SNB) lower became successful with the pair, after some intraday swings, settling down at 1.1631. The close below the 1.1640 key support warns of more losses once yesterday’s move has been digested. A mid body reaction normally occurs during the following one to three days after a falling benchmark so look for a possible bounce to 1.1710.

EUR/JPY: Heading for the 2014 low point. An ever accelerating move lower has brought the pair into close proximity to the 2014 low point, 134.15 (and an estimated support point at 133.25). A break below 134.15 will further enhance a bearish view opening up for continued losses into the 120’s. For the coming days upside reactions should be limited to the 136.80-area (selling opportunity).

USD/CAD: Responsive buying at support. Volatility cut deep yesterday, but suggested support (prior low and Fibo-adjusted “Kijun-Sen”) spurred strong responsive buying (oil back lower might have been of help). A move through resistance around the 1.20-mark should lift sights to 1.2110\1.2285 next. Current intraday stretches are located at 1.1900 & 1.2020.

S&P500: Headed into a 1,970/1,938 support. The market failed to draw advantage from Wed’s long lower “Shadow” and turned south again from massive “Shadow” dynamic resistance around 2,020. Renewed near-term bearish price action hints of a test of a broader short-term 1,970/1,938 support area. For a reintroduced short-term bullish stance a “B-wave high” at 2,062 must be reclaimed.