EUR
Comment: Still very much within the very large ‘flag’ formation. The 9-day moving average held the downside yesterday and if it holds again today expect a re-test of the 1.2900 area very late today/tomorrow.
Strategy: Buy at 1.2825; stop well below 1.2775. Short term target 1.2900, then 1.3000.
EUR/JPY
Comment: A small ‘double top’ at 150.45 suggests the cross will hold below here today and maybe all week. Allow for more consolidation between 150.50 and 151.50. Note the cross is no longer overbought and bullish momentum has eased.
Strategy: Attempt small longs at 150.80/150.50; stop below 150.20. Short term target 151.25/151.45
GBP
Comment: Struggling badly with important long term resistance at 1.9100/1.9145. Note that Cable is not overbought and that momentum is only just bullish. For today expect more of the same with chart levels not holding well as it tries to mount a serious upside break.
Strategy: Attempt small longs at 1.9045; stop well below 1.8975. Short term target 1.9145
JPY
Comment: Consolidating inside the Ichimoku ‘cloud’, stalling at the 26-day average yesterday. Momentum is just bearish and the US dollar is not oversold. For today allow for more consolidation between 117.00 and 118.00, noting that a close below 117.00 should increase downside momentum by enough to test weekly trendline support at 116.60 this week.
Strategy: Sell at 117.65, adding to 118.20; stop above 118.60. Short term target 117.20, then the more important 116.55 area.
