Euro sees choppy session but set to close flat. Dollar/Yen eyes test of 100.00 barriers. Cable poised for 1.3500 retest over coming days. Dollar/Swiss still locked in choppy range trade. Dollar/Cad ascends to fresh multi year highs at 1.3065. Australian Dollar setbacks to accelerate below 0.6285. New Zealand Dollar prepping for next downside extension.
EUR/USD
| EUR/USD – Despite Friday’s bullish close, the market still remains locked in consolidation above the recent 2009 trend lows at 1.2455 (4Mar low). A break back above 1.2755 will now be required to delay additional setbacks and open a more significant recovery over the coming days. However, inability to break back above 1.2755 will keep the pressure firmly on the downside and open the door for a retest of the key trend lows from late October at 1.2330. The 20-Day SMA continues to cap rallies. Strategy: SIDELINED; AWAIT CLEARER SIGNAL. |
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USD/JPY
| USD/JPY – Has been well propped on dips to the 97.00 area with the market now consolidating in bullish fashion ahead of the next upside break beyond 99.70. Above 99.70 should then open a push towards the double bottom objective in the 104.00 area. However, daily studies remain overbought and buying at current levels does not offer compelling risk/reward. Back under 96.55 (6Mar low) delays bullish structure and exposes a 94.60 retest. Strategy: SIDELINED; AWAIT CLEARER SIGNAL. |
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GBP/USD
| GBP/USD – The market has collapsed through the previous weekly consolidation lows to now expose a full 100% retracement of the 1.3500-1.4990 move. Look for a retest and break of 1.3500 over the coming sessions with a push below to expose next key support in the 1.3000 area (July 1985 lows). Back above 1.4305 is now required to delay the bearish structure and shift focus back on topside. Strategy: SIDELINED; AWAIT CLEARER SIGNAL.
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USD/CHF
| USD/CHF – As expected, we have see absolutely no follow through from Friday’s bearish day with the market once again bouncing out from the recent range lows and back into the well defined range. Ultimately, we favor an eventual break of 1.1890 to retest the 2008 multi-year highs by 1.2300 over the coming weeks. We will look to buy into dips in anticipation of the bullish continuation. USD/CHF – As expected, we have see absolutely no follow through from Friday’s bearish day with the market once again bouncing out from the recent range lows and back into the well defined range. Ultimately, we favor an eventual break of 1.1890 to retest the 2008 multi-year highs by 1.2300 over the coming weeks. We will look to buy into dips in anticipation of the bullish continuation. Strategy: BUY @1.1465 FOR A 1.1850 OBJECTIVE, STOP @1.1290.
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