EUR
Comment: At the risk of crying ‘wolf’ yesterday’s price action is a small reversal candle within the interminable downward-sloping ‘wedge’ formation. Let’s see if the Euro can rally to the moving averages and trendline resistance around 1.2800 by Friday.
Strategy: Attempt small longs at 1.2600; stop below 1.2450. Add to longs on a sustained break above 1..2700 for 1.2800 and then 1.3000.
EUR/JPY
Comment: Looking set to trade up to new recent highs probably sooner rather than later.
Strategy: Buy at 125.45; stop below 121.50. Add to longs on a sustained break above 126.25 for 128.45 and probably 130.00.
GBP
Comment: Clawing its way back up off the bottom of the downward-sloping ‘wedge’ formation. A decent Ichimoku ‘cloud’ might cap until the end of this week, maybe more.
Strategy: Attempt small longs at 1.4185; stop below 1.3950. Short term target 1.4300 then 1.4600.
JPY
Comment: Breaking above 99.00 as many are forced to completely change their outlook on the Yen. No doubt there will be much fretting and excitement as we approach the psychological level. With bullish momentum stronger than it has been in at least ten years, does it really matter that the US dollar is already overbought. Massive extensions will have to be factored in, with equally sharp reversals to follow.
Strategy: Attempt tiny longs at 99.35; stop below 98.00. Cover longs between 100.00 and 100.50 and wait.
