EUR
Comment: Re-test the 26-day moving average and the top of the ‘flag’. Momentum has just turned bullish and a weekly close above 1.3400 should add to this upside pressure. Note similar patterns can be seen in a series of major currencies.
Strategy: Buy at 1.3300, adding to 1.3200; stop well below 1.3090. Add to longs on a sustained break above 1.3340 for 1.3400 short term and 1.3600 further out.
EUR/JPY
Comment: Bouncing very strongly from the 50% retracement level though moving averages suggest a short position. Mixed then and likely to continue difficult with random moves within the big band established since October last year. Prepare to be flexible and be aware that a sustained break above 130.00 could set off another short squeeze towards 135.00.
Strategy: Possibly attempt tiny shorts at 129.50; stop/reverse above 130.30 for 132.00. Cover shorts at 126.75.
GBP
Comment: Slow work but managing to close above the 9 and 26-day moving averages. We remind that only a weekly close above 1.5000 will give Cable a fighting chance for a decent rally.
Strategy: Buy at 1.4825; stop well below 1.4500. Short term target 1.4940, eventually 1.5050.
JPY
Comment: Bouncing smartly from the top of the Ichimoku ‘cloud’ and will probably hold above here again today. Moving averages suggest a short so conflicting messages and we may end up trading between 96.00 and 99.00 for longer than we had originally thought.
Strategy: Attempt shorts at 97.25; stop above 98.15. Short term target 96.00.
