EUR
Comment: Dropping below retracement support though still within the large Ichimoku ‘cloud’ and the ‘flag’ formation. The Euro is oversold so watch for a sharp reversal by the end of this week.
Strategy: Attempt small longs at 1.2945; stop below 1.2850. Add to longs on a sustained break above 1.3100 for 1.3400 short term.
EUR/JPY
Comment: Yen crosses are very difficult as they drop by more than we had allowed for yet still within traditional retracement parameters. Allow for more random moves either side of the 130.00 area for another few weeks.
Strategy: Attempt tiny longs at 127.30; stop below 126.00. Short term target 128.50 then 130.00.
GBP
Comment: Dropping below first retracement support but bouncing from the 26-day moving average and the top of the Ichimoku ‘cloud’. Let’s see if Cable can capitalise on this during the rest of the day so that we get something bullish on the weekly chart.
Strategy: Attempt longs at 1.4540; stop below 1.4430. Short term target 1.4700 then 1.4850.
JPY
Comment: Dipping fractionally to a new recent low, just above the 50% retracement level. Difficult and unclear in a move that we see as general consolidation under the psychological 100.00 area. Allow for more of the same today with chart levels not holding well.
Strategy: Attempt longs at 98.35; stop below 97.50. First target 98.50, then 99.50.
