EURUSD
Comment: Retreating from this year's high at 1.4845, still clearly above the most recent Fibonacci retracement. Allow for more sideways work today where a weekly close above 1.4700 is needed to maintain current decent levels of bullish momentum.
Strategy: Buy at 1.4690; stop below 1.4600. Add to longs on a break above 1.4800 and again above 1.4855 for 1.5000 medium term and more long term
Direction of Trade: →
Chart Levels:
| Support | Resistance |
| 1.4650 " | 1.47 |
| 1.4614/1.4600* | 1.4765 |
| 1.456 | 1.48 |
| 1.45 | 1.4845* |
| 1.446 | 1.49 |
GBPUSD
Comment: Gathering downside momentum as we break below trendline support, as feared. The question now is which of the three longer term Fibonacci retracement support levels will limit this correction lower. These lie between 1.5700 and 1.4850. Note that the move has been caused by sterling weakness caused by central bank comments as well as fears over the banking system and its long term outlook.
Strategy: Do nothing. Possibly try and trade the range between 1.5900 and 1.6200
Direction of Trade: →
Chart Levels:
| Support | Resistance |
| 1.5917 " | 1.6062 |
| 1.58 | 1.61 |
| 1.5775 | 1.62 |
| 1.5700* | 1.635 |
| 1.55 | 1.647 |
USDJPY
Comment: Trading just below the nine-day moving average and looking set to drop towards 90.00 again. A weekly close below 90.00 should ensure downside pressure is maintained for a re-test of very important very long term support between 87.10 and 85.00. Note that the US dollar is not oversold.
Strategy: Attempt shorts at 90.65, adding to 91.30; stop well above 91.65. Short term target 90.35/90.00 and then scarily lower still. Remember: the lower we go the greater the temptation to interfere.
Direction of Trade: →
Chart Levels:
| Support | Resistance |
| 90.56 " | 91 |
| 90.35 | 91.39 |
| 90.21/90.00* | 91.65 |
| 89.7 | 92.03 |
| 88.50* | 92.55 |
EURJPY
Comment: Dropping to the bottom edge of the daily Ichimoku 'cloud' where a weekly close below 132.00 is needed to turn momentum bearish. Lets see if it will drop towards the moving averages at the end of this week.
Strategy: Attempt shorts at 133.00, adding to 134.40; stop above 135.55. Add to shorts below 132.50 and again below 132.00 for 131.00 and then 130.00.
Direction of Trade: →
Chart Levels:
| Support | Resistance |
| 132.85 " | 133.45 |
| 132.52 | 134 |
| 132.00* | 134.4 |
| 131.3 | 135.50* |
| 131 | 136.09 |
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