EUR
Comment: The Ichimoku ‘cloud’ provided a springboard for the Euro enabling it to close well above the top of ‘triangle’ consolidation that has dominated the last ten weeks. Against what is expected to be generalised US dollar weakness the Euro should follow the leaders, currently the Swedish krona and Brazilian real. Our measured targets are 1.4600 and eventually the psychological 1.5000.
Strategy: Attempt longs at 1.4385, adding to 1.4310; stop well below 1.4200. Short term target 1.4430, then 1.4545 and after that 1.4635.
EUR/JPY
Comment: Pushing up towards this year’s highest levels (and AUD/JPY and BRL/JPY are at new highs) and overbought with declining bullish momentum – not a healthy mix. Who knows where it will end , but it will be messy. Stand aside if possible.
Strategy: Possibly attempt tiny shorts at 136.90; stop above 137.75. Short term target 134.50.
GBP
Comment: The very thick Ichimoku ‘cloud’ has pushed Cable smartly higher allowing it to close for a second consecutive day well above the ten-week old ‘triangle’ consolidation. The measured target from the pattern is 1.7100 then 1.7500. Careful though as it is almost overbought and bullish momentum is not nearly as strong as many would hope or expect. Futures volume is good as positions are rebuilt.
Strategy: Attempt longs at 1.6970 but only if prepared to add to 1.6750; stop well below 1.6600. First target 1.7000 again, then 1.7100 and after that 1.7500.
JPY
Comment: Endlessly struggling above 94.00 and below a descending Ichimoku ‘cloud’. Moving averages are positive but the Lagging Span is struggling under the candles and Fibonacci resistance – all very mixed really. Expect yet more of the same today.
Strategy: Attempt shorts at 95.00/95.25; stop above 96.00. Short term target 94.15, then 93.00.
