EUR
Comment: Just what we had been waiting for: a ‘hammer’ on the weekly chart, ahead of last year’s low, pushing the Euro up to the top of the downward-sloping ‘wedge’ and trendline resistance. Be careful because as and when sentiment shifts moves could be very large and indiscriminate.
Strategy: Buy at 1.2925, adding to 1.2800; stop below 1.2700. First target 1.3000 then 1.3300.
EUR/JPY
Comment: Yen crosses are mixed with KRW/JPY dipping to a new recent low while this one and CHF/JPY inches up to a new recent high. We expect a push through the rather thin Ichimoku ‘clouds’.
Strategy: Attempt longs at 120.25; stop below 117.00. First target 121.45 then 123.45.
GBP
Comment: Our patience appears to have paid off with Cable forming an interim low around retracement support and now looking set to re-test trendline resistance and break through a very thin Ichimoku ‘cloud’. In what could be a terribly explosive move, and in complete contrast to the cautious dips we have seen since November, prepare for daily rallies of several cents.
Strategy: Buy at 1.4565, adding to 1.4400; stop below 1.4150. Short term target 1.4695 then 1.4985.
JPY
Comment: Retreating from just under January’s high at 94.65, hovering around the upper edge of the Ichimoku ‘cloud’. The US dollar is slightly less overbought and we favour consolidation around current levels today, drifting down to the 9-day moving average at 92.08.
Strategy: Attempt small shorts at 93.00 but only if prepared to ad to 94.15; stop above 94.75. Cover shorts ahead of 92.00.
