EUR, USD, JPY, GBP, AUD Strategies: Barclays

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Exchange rate forecasts update from Barclays

Euro / dollar is forecast to decline while a bearish view on pound / dollar is being pared back. Strategists at Barclays update clients with their latest views, writing:

EUR/USD: A weekly topping candle encourages our bearish view. A move below our initial targets near 1.1360 would signal lower towards 1.1300 and then the 1.1215 range lows.

EUR/JPY: The break above resistance in the 123.55 signals a small bottom pattern and has encouraged us to turn more bullish in the short term. Our upside targets are towards 124.80 and then the 125.55 area. Overall, we prefer to fade upticks while the greater range highs near 126.50 caps.

GBP/USD: We are paring back our bearish view following the lack of downside traction through our targets in the 1.4390 area and stretched daily stochastic studies. A break below 1.4365, the 100-dma, would encourage us to turn bearish once again towards 1.4300.

AUD/USD: We have turned neutral having reached our initial targets near 0.7330 and expect a period of consolidation. The breach of support near 0.7330 was on low volumes and signals lack of commitment to further downside in the short-term.

NZD/USD: The break below nearby support in the 0.6805 area confirms a top under 0.7055 and encourages our bearish view towards 0.6665 and then 0.6545.

USD/CAD: The close below 1.2995 helps us to keep our cautiously bearish view. We are looking for a move lower towards 1.2740 and then the 1.2460 lows. Closing above 1.2995, however, would force us to abandon our bearish short-term view.