Forex Flash; Commodity currencies and technical crosses mixed to bullish – UBS

FXstreet.com (Barcelona) - The UBS strategy team have taken a look at commodity currencies and Euro technical crosses from a technical perspective and note that there is a mixed to bullish bias ahead.

Beginning with AUDUSD, the team are bullish on the pair and note that with trend indicators bullish the risk is for more upside and a break above 1.0490 would open the doors to 1.0625. They see support at 1.0427 ahead of 1.0376. Looking at USDCAD, they hold a neutral vie and highlight that the next important support ahead lies at 0.9895 and a breach of which would trigger a deeper sell off to 0.9845. They see resistance at 0.9964 ahead of 0.992.

The team are neutral on EURCHF and see resistance at 1.2057 ahead of 1.2090 with support at the 1.2000 mark. EURGBP warrants a bullish appraisal in their opinion and they note initial resistance at 0.8114 and a break higher would trigger a fresh extension of gains to 0.8169 with support lying at 0.8056 ahead of 0.8019. Finally, they look towards EURJPY and note that its recent sharp recovery suggests a bullish bias and a potential test of 107.14 may be on the cards, with a break above opening the door to a move to 108.00. They see support ahead at 105.28 ahead of 104.54.