The Currency Charts That Matter

Cable bouncing butstill weak 

Cable has had a decentbounce this week from the lows just below 1.3850. It's still only just reachedthe 38.2% of the most recent swing though which shows just how far we've fallenrecently. Key area above for me is 1.4240-70 - it's the support from mid Februaryand also represents the 50%. This should represent a good short opportunity butif it does get through here the 61.8% will also coincide with a retest of therecent trend line break. These two areas would have me going short withrelatively tight stops, targeting 1.4150 and 1.4080 initially. Of course if wefail where we currently sit then the most recent lows become a target again.

Dollar Yen buildingvalue lower 

The Dollar Yen has been ina three point range since the big drop in February. We did get a retest of theimpulsive low that I called for a couple of weeks ago though I did expect amove below rather than a double bottom. With value building at these lowerprices I would argue there is still another leg lower to come. The long termline in the sand remains the 115.80-116.20 area but if you need a tighter stopthen any close above 115.30 for shorts seems reasonable. 

Euro Sterlingtaking a breather 

The weekly chart for theEuro Sterling pair is truly something. It had already been ripping higher butonce it broke the long term down trend line there has been a continued movehigher. This week has seen some profit taking by the looks of things but itstill remains a buy the dip pair in my opinion. The ideal entry would be the0.7455-85 area but I'm not sure it will be so generous to give you that entry.0.7570 above here marks a possible long entry location though you have to beprepared to sit in it until 0.7400 to prove you wrong. Back above 0.7810 and itcan push towards 0.7940 with 0.8000 the obvious psychological level above.