EUR
Comment: Another small ‘hammer/spike low’ as the Euro holds inside a downward-sloping ‘wedge’ formation. This might just add enough pressure for a squeeze up to trendline resistance, a break of which just might set off enough buy stops to get us back up to 1.3000. Hopefully a sustained break above 1.3000 this afternoon, and even better a weekly close above 1.3100, should add some bullish momentum.
Strategy: Buy at 1.2920; stop below 1.2700. First target 1.3000, then 1.3100.
EUR/JPY
Comment: A small ‘hammer/spike low’ yesterday against the lower edge of the broad range established since October might add enough upside pressure to get us back up to the 120.00 area. Later this month we favour a break above the recent high at 120.04 towards the middle of the broad band which has held since October.
Strategy: Buy at 117.65 but only if prepared to add to 115.70; stop below 114.00. First target 118.00, then 120.00.
GBP
Comment: Retracing over half of the rally up to 1.5000 where a cluster of resistance points lie. We expect it to try and base against the 1.4200 area this morning and possibly inching up towards 1.4500 late this afternoon..
Strategy: Buy at 1.4365; stop well below 1.4050. Short term target 1.4540, then 1.4800.
JPY
Comment: Complex random moves as we consolidate roughly in the middle of the range since December. Expect more work around the lower edge of the Ichimoku ‘cloud’, and under trendline resistance, today.
Strategy: Possibly attempt tiny shorts at 91.00/91.25; stop/reverse above 92.55 for 94.00. Cover shorts ahead of 89.70 and watch for signs of basing between here and 88.40.
