EUR
Comment: Tricky as prices remain within the 1.3800 to 1.4100 range that has held most of the time since May. We continue to feel we are preparing to break out of recent ranges, the best examples currently AUD and NZD.
Strategy: Attempt longs at 1.4030; stop below 1.3800. Short term target 1.4100, then 1.4200.
EUR/JPY
Comment: Holding above trendline support, rather better than expected though well below this year’s high. Expect more consolidation today.
Strategy: Possibly attempt small shorts at 134.60; stop above 135.50. Short term target 133.00, then 132.00.
GBP
Comment: Pushing towards the apex of the ‘triangle/pennant’ and moving averages suggest a long position. The pound is not in the slightest bit overbought and bullish momentum is among the strongest in years. A weekly close above 1.6600 is needed to take bullish momentum back up to the very strong levels of early June.
Strategy: Attempt small longs at 1.6390/1.6300; stop below 1.6080. First target 1.6500, then 1.6600.
JPY
Comment: Retreating smartly from the lower edge of the Ichimoku ‘cloud’ to form a ‘spike high’ candle against the moving averages. This has added to bearish momentum and the US dollar is not oversold. Probably not today, but maybe next week, we favour a test of the pivotal 94.00 area.
Strategy: Sell at 95.85/96.00; stop well above 96.65. First target 95.50, then 95.00 and more.
