EUR
Comment: Consolidating in a neat little range just under this year’s highs (1.3801 on the 8th January and 1.3739 on the 19th March). Moving averages are bullish and the 9-day one pushed the Euro higher yesterday so that we formed a small ‘spike low’ on the daily chart. A weekly close above 1.3800 would add significant bullish momentum.
Strategy: Buy at 1.3630, adding to 1.3555; stop below 1.3400. Add to longs on a sustained break above 1.3750 for 1.3800 and then 1.4000.
EUR/JPY
Comment: Bouncing from Fibonacci retracement support but apparently capped at the top of a very large Ichimoku ‘cloud’. Chikou Span has dropped below the candles which may help to turn momentum bearish. Next week we favour a drop to the 126.00 area, maybe more.
Strategy: Sell at 130.50/131.00; stop above 132.55. Add to shorts on a sustained break below 128.80 for 126.40.
GBP
Comment: Little to add as we consolidate fairly neatly above the 9-day moving average which has risen to 1.5148 today. This will hopefully help to push it up towards this year’s highs. Another round of buy stops is likely above 1.5500.
Strategy: Buy at 1.5225, adding to 1.5150; stop well below 1.5000. Add to longs on a sustained break above 1.5375 for 1.5500 short term and then 1.5725/1.5800.
JPY
Comment: Bouncing from the bottom of a large Ichimoku ‘cloud’, and so far today capped by the ‘neckline’ of the irregular ‘head-and-shoulders’ top. Probably not today but next week we favour another drop and a re-test of the 50% Fibonacci retracement at 94.25 and the March low at 93.55.
Strategy: Attempt shorts at 95.90, adding to 96.45; stop above 98.00. Add to shorts below 95.00 for 94.25, possibly 93.55.
