EUR
Comment: Closing above the top of a neat little ‘channel’ and the 9-day moving average as the US dollar weakens against a raft of major currencies. Momentum is zero and the Euro is certainly not overbought. A little more of the same today.
Strategy: Attempt longs at 1.4725 but only if prepared to add to 1.4650; stop well below 1.4600. Short term target 1.4765/1.4800, eventually 1.5000.
EUR/JPY
Comment: Still hovering rather precariously on trendline support and Yen crosses are all looking slightly different. Note that the Euro is no longer oversold against the Yen and momentum is just bearish. Any minute now yen crosses should drop, maybe like a stone.
Strategy: Attempt small shorts at 130.30; stop above 132.25. Short term target 129.85 then 129.00.
GBP
Comment: Trailing very badly as sterling, on the Bank of England’s Trade Weighted basis, trades at its weakest since April. Still hovering inside ‘triangle’ consolidation but the Lagging Span appears to have broken below the big Ichimoku ‘cloud’, and bearish pressure from the 9-day moving average, suggest a new downside probe of Fibonacci retracement support.
Strategy: Stand aside if you can. If not, possibly attempt tiny longs at 1.5875; stop well below 1.5700. Short term target 1.6000.
JPY
Comment: Going as planned with ‘triangle’ consolidation under trendline resistance with the 9-day moving average pushing prices lower. The US dollar is slightly oversold and bearish momentum has increased. A test of this year’s low at 87.10, and then critical long term support at 85.00, is imminent.
Strategy: Attempt shorts at 88.55 but only if prepared to add to 89.50; stop above 90.05. Short term target 88.25, eventually 87.25.
