EUR
Comment: Bouncing smartly from the 26-day moving average and retracement support, adding weight to our view that the longer term trend is to a stronger Euro. Today’s push above the 9-day moving average is impressive and should add to bullish momentum.
Strategy: Buy at 1.4115; stop well below 1.4000. Short term target 1.4225, then 1.4325.
EUR/JPY
Comment: Holding surprisingly neatly above the 9-day moving average which has pushed up to 136.58 today. This means we are re-testing April’s high and we shall allow for more work either side of this are all week.
Strategy: Possibly attempt small shorts at 137.55; stop above 138.20 Short term target 136.50, maybe 135.00.
GBP
Comment: Almost too good to be true as Cable bounces smartly from retracement and trendline support, and the 26-day moving average which all cluster around 1.5800. Yesterday’s close above the 9-day moving average should add to bullish momentum for a re-test of this year’s high at 1.6664.
Strategy: Attempt longs at 1.6370, adding to 1.6000; stop below 1.5800. First target 1.6425, then 1.6650.
JPY
Comment: Dropping below a thin Ichimoku ‘cloud’, hovering at its lower edge, above moving averages. Expect more cautious random small swings today and probably all week.
Strategy: Possibly attempt small shorts on a bounce to 98.00, adding to 98.55; stop above 99.25. First target 97.00 then 96.00.
