EUR/USD: Neutral: Rebound has scope to extend to 1.1040.

The current movement is viewed as corrective rebound which has scope to extend further to 1.1040. At this stage, a sustained move above this level seems unlikely. That said, the undertone stays positive unless there is a move below the strong 1.0890 support.

GBP/USD: Neutral: In a 1.2080/1.2350 range.

The undertone for GBP has improved somewhat with the strong daily closing yesterday. However, the current outlook is still viewed as neutral and we continue to expect sideway trading between 1.2080 and 1.2350 (even though the nearterm bias is towards the upside.

AUD/USD: Neutral: Only Above 0.7660 Eases Pressure.

While the outlook for AUD is still deemed as neutral, the sharp pull-back from last week’s 0.7705/10 high appears to have scope to extend lower but at this stage, a clear break below 0.7540 seems unlikely (the October’s low of 0.7506 is another major level). On the upside, only a move back above 0.7660 would indicate that the immediate downward pressure has eased.

NZD/USD: Neutral: In 0.7080/0.7210 range.

The current neutral consolidation phase appears incomplete and further range trading seems is expected, likely within a 0.7080/0.7210 range.

USD/JPY*: Bullish: Bullish Against 104.

The failure to move clearly above the major 105.50 resistance coupled with the rapid drop from the high has diminished the odds for further USD strength. However, only a move below 104.00 would indicate that the current bullish USD phase has ended.

*UOB is long USD/JPY targeting 105.80.