EUR/USD: Largest Up-day In A Year; EUR/JPY: Key Pivot Zone – BofAML

Bank of America Merrill Lynch FX Technical Strategy Research notes that Tuesday was EUR/USDs largest up day in just over a year rising 1.4%.

“By comparison, on June 3rd 2016 the EUR/USD rallied 1.94% after disappointing US NFP data. However this time the rally was driven by comments from Mario Draghi and seemingly unrefuted by comments from Fed chair Janet Yellen.

EUR/USD is now trading above the high made during the 2016 US presidential election with a few higher and memorable 2016 highs remaining The consolidation between 1.11-1.13 initially felt toppy, however the trend has continued higher,” BofAML argues. 

BofAML points to EUR/USD support levels around 1.1280, 1.1195, and to resistance levels around 1.1425, 1.1535.

Turning to EUR/JPY, BofAML notes that the cross rallies to key pivot zone and may exhaust first EUR/JPY appears susceptible to a technical pullback before a continuation to the 200wk SMA can follow.

Historically, the 127’s has been a tough area for EUR/JPY to trend through. Market action rejected this area four times in 2016. A countertrend signal from TD Sequential and overbought RSI creates some doubt of an immediate break out,“ BofAML adds.

BofAML points to EUR/JPY support levels around 125.75, 123.60 and to resistance levels around 127.90, 129.60. 

Source: Bank of America Merrill Lynch Rates and Currencies Research

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from eFXNews http://feedproxy.google.com/~r/Efxnews/~3/zCfiAPwejPo/eurusd-largest-day-year-eurjpy-key-pivot-zone-bofaml

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