EUR
Comment: Disappointing that we have dipped below last week’s low. For today prices will hopefully try to base around the 1.3245 retracement area. The Euro is expected to underperform other European currencies again this week.
Strategy: Possibly attempt longs at 1.3250; stop below 1.3200. Add to longs above 1.3424 for 1.3600.
EUR/JPY
Comment: Dropping below a very large Ichimoku ‘cloud’ and testing trendline support as expected. This may or may not hold today, and far more important is whether prices will hold above October’s low, here and in all other Yen crosses.
Strategy: Possibly attempt tiny shorts at 118.25; stop above 121.55. First target 118.00/117.70, maybe 116.00.
GBP
Comment: Still stuck inside the formation that has dominated since October. The closer we get to the apex, the less reliable the formation and any break out.
Strategy: Possibly attempt small longs at 1.4700; stop below 1.4500. First target 1.4880, then 1..5200.
JPY
Comment: Dropping more quickly to 89.00 than we had thought and could carry on down to 88.00, where more consolidation is likely this week.
Strategy: Attempt shorts at 89.40 but only if prepared to add to 91.00; stop above 91.70. First target 89.00 then 88.00.
