EUR
Comment: Very disappointing as we drop to the lowest level since December. Expect more pathetic attempts at stemming the tide.
Strategy: Possibly attempt tiny longs at 1.2725; stop below 1.2600. First target 1.2800, then 1.2950.
EUR/JPY
Comment: Re-testing the bottom of the range established since October. Expect lots of cautious downside testing this week, potentially with sudden very sharp short squeezes.
Strategy: Attempt small longs at 113.80; stop below 112.00. First target 117.00.
GBP
Comment: Back inside the downward-sloping ‘wedge’ formation and the drop to 1.3500 looks increasingly like an ‘extension’. A sustained break above 1.4550 would add weight to this view and a break above 1.5500 would send many scurrying for cover.
Strategy: Buy at 1.4300; stop below 1.4000. Add to longs on a sustained break above 1.4425 for 1.4550 short term, eventually 1.5000.
JPY
Comment: Little to add as we continue hovering unsteadily below a very large Ichimoku ‘cloud’ and the 26-day moving average. The 9-day moving average at 88.93 might limit the downside.
Strategy: Trade the range between 89.00 and 90.75.
