FX Technical Analysis

EURUSD

Comment: Having rallied for ten consecutive days hoping the Euro will do so yet again today might prove more than what it can cope with. It is overbought but a weekly close clearly above 1.4600 should keep bullish momentum at current levels.

Strategy: Buy at 1.4730/1.4700; stop below 1.4500. Add to longs on a break above 1.4775 for 1.5000 medium term and more long term.

Direction of Trade: →

Chart Levels:

Support	Resistance
1.4688 "	1.4768*
1.4642	1.48
1.46	1.4825
1.4561	1.49
1.4500*	1.5000*

GBPUSD

Comment: Messy and nasty and Cable drops below the Ichimoku 'cloud' while moving averages remain positive, though only a sustained break above 1.6750 will kick-start a short-squeeze. Until then allow for more random moves roughly around a central point at1.6350.

Strategy: Possibly attempt small longs at 1.6375; stop below 1.6300. First target 1.6545, then 1.6745.

Direction of Trade: →

Chart Levels:

Support	Resistance
1.6355 "	1.6454
1.6322	1.6535
1.6275	1.66
1.6185	1.6745*
1.6100*	1.684

USDJPY

Comment: Very nasty intra-day moves as we consolidate above this year's low at 90.12 and below the 9-day moving average. The US dollar is no longer oversold against the Yen and while bearish momentum has eased, one-month at-the-money implied volatility has not managed a sustained break above 14.00%.

Strategy: Attempt small shorts at 91.15; stop well above 91.65. Short term target 90.20/90.00, then 89.00 and probably a sudden push to 87.10

Direction of Trade: →

Chart Levels:

Support	Resistance
90.98 "	91.45
90.5	91.65*
90.18/90.00*	91.9
89	92
88.50*	93.3

EURJPY

Comment: Very messy as we stall at the upper edge of the daily Ichimoku 'cloud' and the 26-day moving drops suddenly. Hopefully this will limit the latest bounce and we shall drift back down to the bottom of the 'cloud'.

Strategy: Possibly attempt small shorts at 134.15; stop above 134.85. Add to shorts below 133.40 for 132.80 and then 131.00.

Direction of Trade: →

Chart Levels:

Support	Resistance
134.00 "	134.46
133.44	134.79*
133	135.02
132.8	135.5
131.00*	136.09*

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