EUR
Comment: Slow work but breaking above the downward-sloping ‘wedge’ formation. Yesterday’s close well above the trendline and 26-day moving average should add some much-needed bullish momentum, where a weekly close above 1.2965 should help things move up too.
Strategy: Buy at 1.2875; stop below 1.2700. Add to longs on a sustained break above 1.3000 for 1.3100.
EUR/JPY
Comment: Yesterday’s very strong bounce from an interim low at 122.12 underlines the fact that momentum is bullish, whatever the general public says. The daily close at the highest price since early January may surprise some and lead to a little more short-covering.
Strategy: Attempt small longs at 126.35; stop below 124.00. Add to longs above 126.60 for 128.50.
GBP
Comment: A small ‘hammer’ yesterday from the bottom of the downward-sloping ‘wedge’, testing the 9-day moving average, might end in something similar on the weekly candle.
Strategy: Attempt small longs at 1.3915; stop well below 1.3700. Short term target 1.4000, eventually 1.4500.
JPY
Comment: Bouncing rather more than expected from a recent low at 95.65. Expect random consolidation above here today.
Strategy: Sell at 97.90; stop above 99.25. Add to shorts on a sustained break below 97.00 for 96.00 short term and probably 93.00.
