EUR
Comment: Trying, though not very impressive, to form an interim base with a ‘bullish engulfing’ candle yesterday. Holding above the bottom of the downward-sloping ‘wedge’ and the Euro is slightly oversold. We will still wait and watch for cautious attempts at forming an interim base this week with confirmation needed in the shape of the weekly and monthly candles.
Strategy: Possibly attempt tiny longs at 1.2570; stop below 1.2500. First target 1.2650, then 1.2750.
EUR/JPY
Comment: Yesterday’s high at 120.34, above February’s at 120.04, looks like a small ‘extension’ so we favour consolidation under here today. A weekly close clearly above 120.00 however should set up for a short squeeze either next week or in March.
Strategy: Attempt small longs at 118.30 but only if prepared to add to 117.00; stop below 115.00. First target 119.50, then 120.00.
GBP
Comment: Nothing to add as Cable tries to form an interim low, hopefully around retracement support, for a seventh consecutive day. Note many are surprised by Sterling’s resilience against what they see as terrible economic prospects.
Strategy: Attempt longs at 1.4200; stop well below 1.4050. Short term target 1.4450, then 1.4600.
JPY
Comment: Rallying above the top of the large Ichimoku ‘cloud’ and holding just under January’s high at 94.65. The US dollar is very overbought and we favour consolidation around current levels today.
Strategy: Attempt small shorts at 94.15; stop above 94.75. Cover shorts ahead of 92.00.
