• Euro setbacks continue to be very well supported
• Dollar/Yen locked in choppy consolidation trade
• Cable easily exceeds key psychological barriers; ignores overbought readings
• Dollar/Swiss rallies one again well capped ahead of 1.0930
EUR/USD
| EUR/USD – With the daily RSI rolling over from overbought, the risks from here are for a material pullback over the coming days. However, Tuesday and Wednesday’s jackknife reversals off of the respective daily lows is concerning and we will need to see a break back below 1.3860 to get things once again moving back to the downside. Above 1.4050-60 delays and exposes the 1.4100-50 area. Strategy: SIDELINED; AWAIT CLEARER SIGNAL. |
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USD/JPY
| USD/JPY – The market had been well offered over the past several weeks but setbacks have now stalled out just shy of next key support by 93.55 from March, which guards against the critical 87.15 multi-year trend lows. Friday’s bullish close has been followed by some constructive consolidation this week which could now suggest that an interim base is in place by 93.85 ahead of a bounce back towards 96.70 over the coming days. Below 93.85 negates. Strategy: SIDELINED; AWAIT CLEARER SIGNAL. |
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