EUR
Comment: Disappointing as the Euro was capped by trendline resistance at the top of the interminable downward-sloping ‘wedge’ formation. Let’s see if it can mount another upside test late today.
Strategy: Attempt small longs at 1.2645; stop below 1.2450. Add to longs on a sustained break above 1.2825 for 1.2900 and then 1.3000.
EUR/JPY
Comment: Trying to move higher but bullish momentum could be stronger. This might pick up if we hold above the 9-day average at 123.90.
Strategy: Buy at 124.65; stop below 121.50. Add to longs on a sustained break above 126.25 for 128.45 and probably 130.00.
GBP
Comment: Trading below the bottom of the downward-sloping ‘wedge’ formation as downside probing continues. Where this will end is anyone’s guess but note that the pound is already oversold.
Strategy: Possibly attempt tiny longs at 1.3685; stop below 1.3500. Short term target 1.4000, eventually 1.4600.
JPY
Comment: Holding just under 99.00, and below the recent high at 99.69, and we favour a drift down to 97.00 late today. Later this week or this month we shall continue to favour a drop back down towards the 93.00 area.
Strategy: Sell at 98.50/98.90; stop well above 99.75. Add to shorts on a sustained break below 97.80 for 97.00 and maybe 95.00.
