EUR
Comment: Another rather dreary currency that really cannot decide what it ought to be doing. Expect more pathetic attempts at clinging to support around 1.2800.
Strategy: Possibly attempt small longs at 1.2840; stop below 1.2700. First target 1.2900, then 1.3000.
EUR/JPY
Comment: Hovering above the bottom of the range established since October. Expect more cautious downside testing this week, potentially with sudden very sharp short squeezes.
Strategy: Attempt small longs on a dip to 114.00/113.60; stop below 112.00. First target 116.00, then 118.00.
GBP
Comment: Slipping under the bottom of the downward-sloping ‘wedge’ formation but then holding above the 9-day moving average and closing within the formation. Only a sustained break above 1.4550 would add bullish pressure and a break above 1.5500 would send many scurrying for cover.
Strategy: Buy at 1.4175; stop below 1.4000. Add to longs on a sustained break above 1.4440 for 1.4550 short term, eventually 1.5000.
JPY
Comment: Nothing 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 89.27 might limit the downside this morning.
Strategy: Trade the range between 89.00 and 90.65.
