EUR
Comment: Weekly moving averages have crossed to a buy on the Ichimoku ‘cloud’ chart, another tiny signal that we are trying to form an interim low. Plenty of hazards on the way up though. Momentum is just bullish and the Euro certainly not overbought. Let’s see if the Euro can capitalise on these small bullish Technical points.
Strategy: Attempt small longs at 1.2895; stop below 1.2730. First target 1.2925, then 1.3030.
EUR/JPY
Comment: A bit messy as we trade in a large ‘triangle’, looking for direction, between the moving averages. Expect more of the same today as many yen crosses prepare for what we think should be another downside test some time this month.
Strategy: Sell at 108.85; stop above 109.65. First target 107.50, then 106.60.
GBP
Comment: The weekly Ichimoku ‘cloud’ is very thin at the moment and moving averages suggest a long position. We continue to feel that Cable is trying to put in a new interim low and should be helped by the daily ‘cloud’ which rises steeply again this week.
Strategy: Attempt longs at 1.5480; stop below 1.5300. First target 1.5600, then 1.5700.
JPY
Comment: Another ‘spike high’ against the 26-day moving average hints this might be another new interim high. Back inside the ‘channel’ and below the 9-day moving average. All aspects of this chart continue to point to a short position and the US dollar is not oversold against the yen.
Strategy: Attempt shorts at 84.35/ 84.50; stop above 85.25. First target 84.00, then 83.50.
