EUR
Comment: Very disappointing as the Euro trades in a tiny range around 1.2900. Expect more of the same this morning, then looking for direction this afternoon with ‘spikes’ outside the recent range both to the downside and the upside.
Strategy: Attempt longs at 1.2950; stop below 1.2800. Target 1.3200.
EUR/JPY
Comment: Hovering at the very bottom of the range since October with Wednesday’s ‘spike low’ having done little to set up for a rally. Expect it to try and hold above 114.00 again today.
Strategy: Attempt longs at 114.70; stop below 113.60. Target 117.00.
GBP
Comment: Consolidating in a little ‘triangle’ below the downward-sloping ‘wedge’ formation just above Wednesday’s low at 1.3620, Cable’s lowest since September 1985 which was a period of massive FX turmoil. Caution is warranted as sub-1.3500 Cable only traded for 12 months from Sep 1984 to 1985. Watch for ‘false breaks’.
Strategy: Possibly attempt longs at 1.3750; stop below 1.3600. First target 1.3900, then 1.4000.
JPY
Comment: Hovering unsteadily around 88.50, with a potential ‘double bottom’ at 87.10, the Japanese authorities no doubt hoping it will work. The Yen is very strong here and against a raft of other currencies, in part causing last month’s record collapse in exports. Allow for more work between 88.00 and 90.00 today.
Strategy: Trade the range between 88.00 and 90.00 keeping an open mind.
