EURUSD
Comment: Consolidating very neatly at this year's highs as few are willing to tear up forecasts (consensus opinion is for the greenback to strengthen over the next 12 months). Daily and weekly Ichimoku 'clouds' are providing underlying support to the Euro and as other currencies help the Euro higher. Our first measured target is 1.5000.
Strategy: Buy at 1.4580/1.4540; stop well below 1.4400. Add to longs on a break above 1.4635 for 1.5000 medium term
Direction of Trade: →
Chart Levels:
| Support | Resistance |
| 1.4533 " | 1.4605* |
| 1.4465 | 1.4635* |
| 1.44 | 1.473 |
| 1.435 | 1.4825 |
| 1.4200* | 1.49 |
GBPUSD
Comment: Carefully testing the upper edge of a relatively thin Ichimoku 'cloud' as Cable gets dragged higher by other currencies that are gaining against the US dollar. Daily and weekly closes above 1.6600 should set off another round of short-covering.
Strategy: Buy at 1.6555; stop well below 1.6400. First target 1.6600, then 1.6745, then 1.7000 again
Direction of Trade: →
Chart Levels:
| Support | Resistance |
| 1.6525 " | 1.6566 |
| 1.6455 | 1.6592/1.6600* |
| 1.6425 | 1.6625 |
| 1.635 | 1.667 |
| 1.6288* | 1.6745* |
USDJPY
Comment: Carefully re-testing of July's low at 91.73, with a low at 91.61 yesterday and surprisingly solid bids in the 91.65 area. The US dollar is not oversold and momentum is just bearish, longer term averages also suggesting a short position as the 9-day average bears down on prices. An eventual break below 91.50 should see implied at-the-money volatility increase significantly as we approach January's low at 87.10.
Strategy: Sell at 92.10, adding to 92.60; stop above 93.55. Short term target 91.75/91.50, then lower still
Direction of Trade: →
Chart Levels:
| Support | Resistance |
| 91.90 " | 92.25 |
| 91.61/91.50** | 92.6 |
| 91 | 93 |
| 90.85 | 93.45/93.55* |
| 90 | 94.15 |
EURJPY
Comment: Dithering without direction as the spotlight is very much on the US dollar. Limping along above the upper edge of a widening Ichimoku 'cloud'. Watch for signs of stalling today and tomorrow.
Strategy: Possibly attempt tiny shorts at 134.30; stop above 134.65. Short term target 133.00, then 132.00.
Direction of Trade: →
Chart Levels:
| Support | Resistance |
| 133.87 " | 134.41 |
| 133 | 134.65 |
| 132.82 | 135 |
| 131.7 | 135.5 |
| 131.00* | 136.09 |
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