EUR
Comment: Dipping again towards February’s low at 1.2513 and very frustrating. Note that other currencies are trading at their weakest ever against the US dollar. Watch it try and stabilise once again.
Strategy: Possibly attempt tiny longs at 1.2695; stop well below 1.2500. First target 1.2750 then 1.2900.
EUR/JPY
Comment: Fairly impressive potential ‘double bottom’ after the catastrophic losses last year. Allow for more consolidation today above 122.00 remembering that later on we still favour a squeeze up to trendline resistance at 128.50 and probably December’s high at 131.02.
Strategy: Attempt longs at 123.10; stop well below 122.00. First target 124.70/125.00, then 126.00 again.
GBP
Comment: Holding up better than many other currencies as the potential for ‘competitive devaluations’ around the world increases. Allow for more of the same.
Strategy: Attempt tiny longs at 1.4270; stop below 1.4050. Short term target 1.4400 then 1.4600.
JPY
Comment: The biggest weekly rally since November and one of the biggest in years so that the Yen has retraced 50% of the drop between August and December and stalling at the 26-week moving average. While we cannot completely rule out a tiny blip to a new recent high we feel prices should consolidate at these new higher levels this week and maybe through the whole of March.
Strategy: Attempt shorts at 97.55; stop above 99.00. Add to shorts on a sustained break below 96.35 for 96.00 and probably 95.00.
