€ longs back in full force; eyes on $1.37

EUR/USD Current price: 1.3526

The Euro is back on track, technically well positioned to launch another attack towards recent trend highs. The vigorous rebound off lows has been nothing short of astounding, and with such bullish momentum hard to fade - pause and consolidation in Asia possible -, the pair should be well supported on shallow dips. One hint over the current commitment of buyers was seen thru Tuesday's American session, when a pullback to 1.35 was graciously welcomed by value hunters. Clean break above 1.36 allows retest of 1.37. Break higher may have to wait until ECB's outcome later this week.

EUR/JPY Current price: 127.15

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EUR/JPY is sustaining gains at fresh cycle highs. The breakout, while not having the full force of an ideal clean/sizeable bullish bar, is pre-emptive that further quotes are more likely than not as it occurs in consistency with the underlying uptrend. Immediate target for bulls is 127.80 - April 2010 highs - while on the downside, even on fake breakout, sellers will most likely have a hard time breaking below 126.00. Worth noting is that out of the last 14 hourly candles, only 1 is bearish, supporting the notion of loyal buyers all around.

USD/JPY Current price: 93.65

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The upside resolution into new trend highs with the subsequent 8 hours+ consolidation above the breakout level is a positive sign for further appreciation. Any pullback to retest the broken-resitance-turned support enjoys now the confluence of a rising 20-EMA on the hourly chart. The market continues to show clear impulsive moves followed by retracements corrective in nature. The next upside target is located at 94.70 - April 2010 highs-. Bear will have a hell of a job if they are to regain control, with first mission to regain the downside of a 45Ã‚Âº angled 20-EMA on the H4, which continues to command prices higher, a pattern observed during last Asian session.

AUD/USD: Current price: 1.0382

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Within the context of a daily range with well defined parameters between 1.0480 and 1.0350, the risk continues to be skewed to the downside as per recent squeeze of longs. Price is making lower highs and lower lows since yesterday's RBA dovish meeting, an early indication of a pre-breakout scenario. A bounce back above 1.0415 - last swing high - would negates the structure, potentially forcing sellers to admit temporary defeat and abort the mission south, which would result in in erratic choppy conditions forming again.

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