EUR
Comment: Inching higher again to the bottom of a large Ichimoku ‘cloud’. Moving averages have crossed to bullish and more short covering is probably likely on a sustained break above 1.3200. Could do a better if a few other currencies helped it along.ving averages will cross to positive. Could do a better if a few other currencies helped it along.
Strategy: Buy at 1.3050 but only if prepared to add to 1.2835; stop below 1.2750. Add to longs on a sustained break above 1.3100 for 1.3200 and eventually 1.3600.
EUR/JPY
Comment: Toying with some of the highest prices at the top of the band that has held since October. The Euro is overbought and bullish momentum not nearly as strong as one would expect. We continue to favour a push up towards 130.00.
Strategy: Attempt small longs at 128.55; stop below 127.00. Add to longs above 129.00 for 130.20/131.00.
GBP
Comment: Hovering between the 9-day moving average and the 26-day one and momentum is nil. A narrower Ichimoku ‘cloud’ is the only ray of hope that prices might manage a squeeze higher.
Strategy: Strategy remains unchanged: attempt longs at 1.4045; stop below 1.3700. Short term target 1.4200, eventually 1.4500.
JPY
Comment: Still holding rather unsteadily above the 97.00 area. Bullish momentum has collapsed completely and the US dollar is certainly no longer overbought. Allow for more of the same today and maybe all week.
Strategy: Attempt small shorts 98.50; stop above 99.25. Add to shorts on a sustained break below 97.00 for 96.00 short term and probably 93.00.
