Daily Technical Analysis
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EUR: Possibly attempt tiny longs at 1.4000; stop below 1.3800
Fri, Sep 12 2008, 07:10 GMT
by Nicole Elliott
EUR
Comment: Another new recent low at 1.3881, dragged down by EUR/JPY, and in line with many other major currencies. We feel that the moves are caused mainly by the unwinding of ‘carry trades’ in their many guises rather than any sudden new attractions of the greenback. It has collapsed in eight of the last nine weeks, the biggest monthly collapse ever, and the Euro is grossly oversold.
Strategy: Possibly attempt tiny longs at 1.4000; stop below 1.3800. Short term target 1.4200/1.4225.
EUR/JPY
Comment: Yesterday’s slide to a low at 147.52, followed by a sharp bounce, suggests we have done enough for this week. Therefore expect consolidation today as we prepare for another massive slide later this month.
Strategy: Sell at 150.50, but only if prepared to add to 152.50; stop well above 153.60. Short term target 149.25, then 147.55 again.
GBP
Comment: A very unusual chart pattern this week with a recent low at 1.7445: a possible ‘spinning top’ on the weekly chart. Be very careful as the pound is terribly oversold because the dollar is horribly and suddenly overbought. Sterling is doing better against some other currencies.
Strategy: Possibly attempt tiny longs at 1.7600; stop below 1.7400. Short term target 1.7700, then 1.8000.
JPY
Comment: Yesterday’s downside probe was deeper than we had expected underlining the fact that we are in the process of preparing to move to a new lower trading band. We should hold above 106.00 again today due to exhausted traders and nervy investors. Next week we should get going again.
Strategy: Strategy remain unchanged: sell at 107.35, adding to 107.80; stop well above 108.25. Short term target 107.00, then 106.65.
Download Full EUR Technical Analysis
Published on Fri, Sep 12 2008, 07:23 GMT
Archive
- EUR: Attempt longs at 1.4000
Published On Fri, Jul 3 2009, 06:29 GMT - EUR: Attempt longs at 1.4115
Published On Thu, Jul 2 2009, 06:17 GMT - EUR: Attempt longs at 1.4020
Published On Wed, Jul 1 2009, 06:29 GMT - EUR: Attempt longs at 1.4100, adding to 1.4000
Published On Tue, Jun 30 2009, 06:18 GMT - EUR: Attempt longs at 1.4005; stop below 1.3800
Published On Mon, Jun 29 2009, 06:32 GMT
Mizuho Corporate Bank
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