EUR
Comment: Rallying slowly from retracement support and looking set to move a little higher again today. Only a weekly close above 1.4200 will really get things going and another big round of short-covering. Hopefully a whole host of other currencies will join in with this move adding momentum.
Strategy: Attempt longs at 1.4100, adding to 1.4000; stop below 1.3800. Short term target 1.4135, then 1.4300/1.4339.
EUR/JPY
Comment: Squeezing suddenly to a higher price not seen in days, yet forming a potential ‘spike high’. This should probably lead to a drift slowly lower over the rest of this week.
Strategy: Possibly attempt shorts at 135.00; stop above 136.00. Short term target 133.00, then 132.00.
GBP
Comment: Breaking higher, as expected, and should squeeze to the next area of resistance around 1.7000. 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 1.6700, adding to 1.6600; stop below 1.6400. First target 1.6800, then 1.7000.
JPY
Comment: Dipping below the lower edge of the relatively large Ichimoku ‘cloud’ and above the ‘neckline’ and moving averages suggest a short position. Maybe this week, certainly some time in July, we favour a test of the pivotal 94.00 area (and an eventual break below here).
Strategy: Sell at 95.85/96.00; stop well above 96.65. First target 95.00/94.88 then 94.00.
