EUR
Comment: Still working in an interminable downward-sloping ‘wedge’ formation. Let’s see if the Euro can rally through the moving averages up to daily trendline resistance around 1.2775.
Strategy: Buy at 1.2715; stop below 1.2450. Add to longs on a sustained break above 1.2775 for 1.2900 and then 1.3000.
EUR/JPY
Comment: Preparing itself to move on up to a new step slightly higher, possibly to trendline resistance. We continue to favour a squeeze back up towards 126.00 and probably, eventually, the 130.00 area.
Strategy: Buy at 125.15, adding to 124.00; stop below 121.50. Add to longs on a sustained break above 125.75 and again above 126.25 for 128.45 and probably 130.00.
GBP
Comment: Cable bashing again as we re-test the bottom of the downward-sloping ‘wedge’ formation. Now prepare to form another interim low this week.
Strategy: Possibly attempt tiny longs at 1.3800; stop below 1.3500. Short term target 1.4000, eventually 1.4600.
JPY
Comment: Consolidating between 97.00 and 99.50 in what might turn out to be an interim high. While below the psychological level at 100.00 we shall continue to favour a drop back down towards the 93.00 area.
Strategy: Sell at 98.50; stop well above 99.75. Add to shorts on a sustained break below 97.00 for 96.00 and probably 95.00.
