EUR
Comment: Dropping to the bottom of the downward-sloping ‘wedge’ formation as the US dollar strengthens against most currencies. We will still wait and watch for cautious attempts at forming an interim base this week, possibly with a rather scary ‘spike low’.
Strategy: Do nothing if possible. For those who have to attempt tiny longs at 1.2615; stop below 1.2550. First target 1.2700/1.2750.
EUR/JPY
Comment: Just about holding, unsteadily, at the bottom of the broad range that has held since October and under a very thin Ichimoku ‘cloud’. Expect more of the same today and maybe all week with an attempt to rally late this month.
Strategy: Attempt small longs at 116.60; stop below 114.00. First target 118.00, then 119.00.
GBP
Comment: Little to add as Cable tries to form an interim low, hopefully around retracement support but maybe we shall have to live through a nasty ‘spike low’. Note the very thin Ichimoku ‘cloud’.
Strategy: Possibly attempt tiny longs at 1.4280; stop well below 1.4050. Short term target 1.4400, then 1.4600.
JPY
Comment: Hovering cautiously above trendline resistance, slightly overbought, and we favour a short squeeze to the top of the large Ichimoku ‘cloud’. Upside pressure increases if we hold above the bottom of the ‘cloud’ at 91.00.
Strategy: Attempt small longs on a dip to 92.15, adding to 91.60; stop below 90.70. Add to longs above 92.75 for 93.85/94.00.
