EUR
Comment: Testing the top of the ‘triangle’, managing a slightly unconvincing close above the upper edge, helped up by a large Ichimoku ‘cloud’. If not today then next week we favour a break higher, where a weekly close above 1.4200 should add considerably to bullish momentum and trigger a series of waves of stop loss buying.
Strategy: Attempt small longs at 1.4125; stop below 1.4000. Short term target 1.4200, then this year’s high at 1.4339.
EUR/JPY
Comment: Hovering just under the 50% Fibonacci resistance and we continue to fell it should stall here and turn down next week. Moving averages suggest a short position, with the large, flat-bottomed Ichimoku ‘cloud’ hopefully forcing prices down below it.
Strategy: Attempt small shorts at 132.35; stop well above 133.40. Short term target 131.60, then 129.00.
GBP
Comment: Similar to the Euro (and Aussie and Kiwi) as we test the upper edge of a ‘triangle’ formation. Cable is not overbought though bullish momentum is very low. This should increase significantly on a weekly close clearly above 1.6500.
Strategy: Attempt small longs at 1.6380/1.6300; stop below 1.6155. First target 1.6470/1.6500, then 1.6600.
JPY
Comment: Holding rather precariously at the ‘neckline’ of a sort-of ‘head-and-shoulders’ top and the 9-day moving average. This has eased the oversold situation very considerably though momentum is still clearly bearish. Expect more hesitation at current levels today prior to a drop next week.
Strategy: Attempt shorts at 93.70; stop above 94.55. Cover between 93.00 and 92.50.
