EUR
Comment: Expect a downside probe today in what we see as an A, B, C-type correction from June’s high at 1.4339. Others will be pointing to a potential interim top and a potential ‘head-and-shoulders’ formation.
Strategy: Possibly attempt small longs at 1.3920; stop well below 1.3900. Short term target 1.4130/1.4170.
EUR/JPY
Comment: Dipping below the 9-day moving average for the first time in weeks making the picture look slightly top-heavy. We shall continue to allow for random moves either side of April’s high at 137.42.
Strategy: Attempt small shorts at 137.00; stop above 138.50. Short term target 136.50, maybe 135.00.
GBP
Comment: Some will probably be pointing to a potential ‘double top’ against this month’s high at 1.6664, probably the very same people who have missed the pound’s move this year. We shall allow for more consolidation under 1.6600 this week, but expect a new interim base to form around the 1.6000 area.
Strategy: Possibly attempt very small longs at 1.6335; stop well below 1.6200. First target 1.6600.
JPY
Comment: Still hovering slightly unsteadily either side of a rapidly thinning Ichimoku ‘cloud’, above moving averages which have just crossed to bullish. Expect yet more cautious random small swings today and an upside probe some time this week.
Strategy: Possibly attempt small shorts at 98.50; stop above 99.25. First target 97.50, maybe 97.00.
