Euro short triggered at 1.3635; stops to cost. Dollar/Yen confined to inside day price action. Cable putting in bearish reversal day after struggling above 100-Day SMA.Dollar/Swiss still consolidates by 200-Day SMA. Dollar/Cad looking to carve medium-term higher low. Australian Dollar starting to reverse course. New Zealand Dollar RSI crossing down from overbought.
EUR/USD
| EUR/USD – Tuesday’s break below 1.3490 has put the pressure back on the downside and although trade remains extremely choppy our short-term bias is for additional setbacks over the coming days. Daily studies are just now rolling over from overbought and show plenty of downside potential. Our initial target comes in by the 10-Day SMA. Only back above 1.3740 negates. Position: SHORT @1.3635 FOR A 1.3310 OBJECTIVE, REVISED STOP 1.3635. |
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USD/JPY
| USD/JPY – The market is content on consolidating Tuesday’s gains with some inside day price action on Wednesday. We retain a mildly bullish outlook but will need to see a break above 98.60 or below 96.90 for clearer directional bias. Back above 98.60 will open a direct retest of the 2009 highs at 99.70 and beyond. Strategy: SIDELINED; AWAIT CLEARER SIGNAL. |
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GBP/USD
| GBP/USD – The pair is struggling to establish above the 100-Day SMA and could be on the verge of a resumption of the broader downtrend following the latest break below Tuesday’s low at 1.4545. Daily stochs are well overbought and are just now looking to cross over. The key level to watch below comes in by 1.4395 with a break to confirm bearish resumption and accelerate declines. Only back above 1.4780 negates. Strategy: SIDELINED; AWAIT CLEARER SIGNAL.
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USD/CHF
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USD/CHF – The pair has found some decent support at current levels in the form of the 50% fib retracement off of the 1.0370-1.1970 move (1.1170) and the 200-Day SMA (1.1200). Look for a rebound from current sub-1.1500 levels back into the familiar range over the coming days. Below 1.1165 negates. Strategy: SIDELINED; AWAIT CLEARER SIGNAL.
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