EUR
Comment: Stalling ahead of the 26-day moving average, dipping back to the 9-day one and the daily Ichimoku ‘cloud’. Hopefully this and 38% Fibonacci retracement support will prop up the Euro allowing it to rally further later this week. Momentum is just bullish and the Euro certainly not overbought.
Strategy: Attempt small longs at 1.2800; stop below 1.2730. First target 1.2920, then 1.3030.
EUR/JPY
Comment: ‘Triangle’ consolidation looking for direction, between the moving averages. Growing resistance at 109.50 suggests this may cap again this week. Expect more of the same today as many yen crosses prepare for what we think should be another serious downside test some time this month.
Strategy: Sell at 107.70/108.00; stop above 109.65. First target 107.50, then 106.60.
GBP
Comment: Very dreary as we creep across the page, clinging to 38% Fibonacci retracement support. 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. Bullish momentum might increase with a daily close above the 9-day moving average.
Strategy: Attempt longs at 1.5375; stop below 1.5300. First target 1.5490, then 1.5600.
JPY
Comment: Minute daily ranges back inside the ‘channel’ and below the 9-day moving average, the 26-day one dipping fractionally. 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 84.15/ 84.50; stop above 85.25. First target 83.85/83.50.
