EUR
Comment: Preparing to re-test this year’s high (1.4448). The Euro is no longer overbought and momentum is bullish, and could increase on a daily close above 1.4350.
Strategy: Attempt longs at 1.4345; stop below 1.4170. Short term target 1.4375, then 1.4445.
EUR/JPY
Comment: Stalling at the thin point of the Ichimoku ‘cloud’. With a little luck the upper edge of the ‘cloud’ will again limit the latest small rally setting off a re-test of the 131.00 area late this week or the next one.
Strategy: Attempt shorts at 133.00; stop above 134.15. Short term target 131.50, then 131.00.
GBP
Comment: Pity the lower edge of a thin Ichimoku ‘cloud’ has not managed to nudge Cable higher. There is still another chance today and throughout the week, where other currencies should drag this one along.
Strategy: Attempt small longs at 1.6360; stop below 1.6175. First target 1.6414/1.6445, then 1.6600.
JPY
Comment: Stalling once again at the nine-day moving average. Allow for more nervous consolidation above 92.00 today and maybe above July’s low at 91.73 all week. An eventual break below 91.50 should see implied at-the-money volatility increase significantly and increasing bearish momentum.
Strategy: Sell at 92.80, adding to 93.10; stop above 93.55. Short term target 92.50, then 91.95.
