Cable - Brexit themarket has made up its mind
Whatever the political prosand cons for Britain leaving the EU, the market has decided it would be badnews hence the recent fall in the Pound. Boris Johnson backing the 'out' campaignyesterday has pushed Cable to levels not seen for 7 years. The Daily chartshows a flag with 12 point target which would take Cable to 1.30, the firstmajor support on any move down will be Jan 2009 lows at 1.35. Until aclose below 1.4078 is seen this trade is not confirmed and the market could seeconstructive trade back towards the flag trend line around 1.4287 wherenew sellers should be found. Upcoming news relating to Brexit will need tobe closely watched and the biggest influence on future moves.
EURJPY downtrendholds again
The down trend that hasprevented gains for the Euro against the Yen since 2015 has finallycreated a decisive move following a third test. After apotential double bottom was formed at 126.04 the trend needed to break toconfirm a move higher, it failed. The third hold of a trend line is often thehold that instigates a strong move and increased volume over the past 4 weeksconfirms this. Trade through 121.93 (50% fib) down to 119.08 and eventually115.36 can now be expected. A bearish view can remain intact until trade backaboce 126.04, those already short may trail stops above the trend line now.
NZD - Inside daybreaking
This morning has seen aninside day break for the NZD as USD has strengthened across the board. Thebreak from .6634 should now traget .6558-43 the bottom of the current range andneeds to find buyers for the range to remain intact. A break below here doesnot signal a huge change in sentiment however, as NZD is still within a largerrange between .6887 and .6346 and with only 4 trading days left of the monthlikely to post an inside month, the break of which will indicate which extremeof the range is to be tested first. If support is found at .6558 then a bounceback towards down trend that caps the top of the current small range.
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