Euro looking to put in inside day; still below 100-Day SMA. Dollar/Yen grinding higher; eyes break of 99.70. Cable setting up for doji close. Dollar/Swiss setbacks seen to 10/20-Day SMAs. Dollar/Cad stalling by multi-day rising trend-line support. Australian Dollar stochastics could be on verge of negative cross. New Zealand Dollar shows scope for additional gains; below 0.5205 negates.
EUR/USD
| EUR/USD – Remains constructive and continues to correct out from the recent 1.2455 lows set on March 4. The rally has however stalled out after just exceeding the 100-Day SMA on Monday to 1.3070 ahead of the latest minor setbacks. Next key topside resistance comes in by 1.3095 (9Feb high) while only back under 1.2835 negates recovery and shifts focus back on downside. Inside day price action on Tuesday leaves outlook unchanged. Strategy: SIDELINED; AWAIT CLEARER SIGNAL. |
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USD/JPY
| USD/JPY – The market continues to consolidate since posting fresh yearly highs by 99.70 on March 5. At this point a compelling argument can be made in both camps with bulls arguing for bullish consolidation ahead of the next upside extension beyond 99.70, while bears still hold by the inter-day head & shoulders structure. The best position at present however is to remain on the sidelines until a clearer opportunity presents itself. Strategy: SIDELINED; AWAIT CLEARER SIGNAL. |
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GBP/USD
| GBP/USD – Despite the latest impressive upside moves, the current price action is still classed as corrective with the market very much confined to the overriding bear channel. The 50-Day SMA which currently comes in by 1.4345 has offered itself as formidable resistance for much of the downtrend and we would once again expect to see unsustainable gains on rallies above the 50-Day SMA. Right now, the 20-Day is managing to cap gains with a break back below 1.3890 to accelerate towards 1.3500. Inside day price action leaves us sidelined. Strategy: SIDELINED; AWAIT CLEARER SIGNAL.
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USD/CHF
| Usd/Chf - Despite the previous week’s break to fresh 2009 highs at 1.1970, trade remains quite choppy and the market is still very much confined to the very prominent range that has defined price action over the past few months. The 10/20-Day SMAs come in by 1.1700 and we would look for a move back towards this level over the coming session, with any breaks below ultimately supported by the 50/100-Day SMAs at 1.1545. Only back above 1.1970 negates. Strategy: SIDELINED; AWAIT CLEARER SIGNAL.
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