EUR
Comment: Slow work as we consolidate above retracement support and yesterday’s close above the 9-day moving average might increase bullish pressure. A weekly close above 1.4200 will probably lead to another serious round of short-covering.
Strategy: Buy at 1.4075, adding to 1.3945; stop well below 1.3900. Short term target 1.4150, then 1.4250 and this month’s high at 1.4339.
EUR/JPY
Comment: Quite incredible how neatly the 9-day moving average has limited the downside. We shall continue to allow for random moves either side of April’s high at 137.42. A weekly close above 138.50 might add to bullish pressure for an upside squeeze next week.
Strategy: Possibly attempt tiny shorts at 137.90; stop above 138.50. Short term target 136.50, maybe 135.00.
GBP
Comment: Cable is just a hair’s breath off this month’s high at 1.6664, having retraced 38% of the massive declines of 2008. A weekly close above 1.6500 should keep bullish momentum close to a record high forcing many long term investors to re-think core positioning.
Strategy: Attempt longs at 1.6560, adding to 1.6400; stop well below 1.6200. First target 1.6650 then 1.6800.
JPY
Comment: Still trading either side of a thinning Ichimoku ‘cloud’, above moving averages which have just crossed to bullish, having traded in a broad band roughly between 94.00 and 100.00 since March. Expect yet more cautious random small swings today.
Strategy: Attempt small shorts at 98.00, adding to 98.45; stop above 99.25. First target 97.50 then 97.00.
