EUR
Comment: Another weekly close above the top of the Ichimoku ‘cloud’ and 50% Fibonacci retracement, with last week’s ‘hammer’ candle likely to see bullish momentum increase significantly. Against what is expected to be generalised US dollar weakness the Euro should follow the leaders, currently the Swedish krona and Canadian dollar.
Strategy: Attempt longs at 1.4240, adding to 1.4185; stop below 1.4000. Short term target 1.4300, then a lot more.
EUR/JPY
Comment: Hovering unsteadily in the middle of a large flat-topped Ichimoku ‘cloud’ at the 38% Fibonacci area. We still feel it should form another intermediate top in the 135.00 area for a re-test of increasingly pivotal support between 126.00 and 130.00.
Strategy: Attempt small shorts at 134.75; stop above 136.25. Add to shorts on a sustained break below 132.80 for 131.85 and more longer term.
GBP
Comment: The best weekly close this year above the top of the ‘triangle’ consolidation pattern has pushed bullish momentum higher. The measured target from the pattern is 1.7100 then 1.7500.
Strategy: Attempt longs at 1.6725 but only if prepared to add to 1.6600; stop well below 1.6450. First target 1.6600 and then this year’s high at 1.6745.
JPY
Comment: Last week’s ‘doji’ underlines the fact this currency pair is looking for direction. A large flat-topped Ichimoku ‘cloud’ is expected to grind down the US dollar which should weaken against a raft of other currencies. It is not oversold yet though momentum is not bearish either.
Strategy: Attempt shorts at 94.65, adding to 95.25; stop above 96.00. Short term target 94.15, then 93.00.
