Euro fails to hold early gains; well offered. Dollar/Yen inches closer to key 99.70 highs. Cable pauses for breather following 4 consecutive down days. Dollar/Swiss well supported ahead of 1.1345 previous resistance. Dollar/Cad recovers from early setbacks; stops trailed for profit. Australian Dollar caught in extremely choppy trade. New Zealand Dollar hourly shows potential h&s top.
EUR/USD
| EUR/USD – Tuesday’s bounce is to be expected following the sharp slide off of the 1.3740 highs from 19Mar. The market has been well supported on dips back to the 100-Day SMA and with daily studies now in neutral territory, we retain no short-term bias. However, the broader structure remains grossly bearish and as such, we will continue to look for opportunities to sell into rallies. Strategy: SIDELINED; AWAIT CLEARER SIGNAL. |
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USD/JPY
| USD/JPY – Setbacks have been well supported on Monday with the market initially dropping down to 95.95 but unable to extend any further before sharply reversing back above 98.90 today. There is solid internal range support ahead of 97.00 now and we continue to favor additional upside over the coming sessions through the 2009 highs at 99.70 and above 100.00 towards the major 87.15 double bottom objective by 104.00. Only back under 97.00 delays. Strategy: SIDELINED; AWAIT CLEARER SIGNAL. |
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GBP/USD
| GBP/USD – Remains confined to a very prominent bear channel with the latest corrective rally stalling out by the 100-Day SMA to potentially set up the next medium-term lower top at 1.4780 (24Mar high). Look for additional weakness over the coming days with an eventual retest and break of the key trend lows at 1.3500 (23Jan low) favored. Only back above 1.4780 negates. However, with the pair now trading in the middle of the channel, the choppy nature of trade leaves us sidelined until a better opportunity presents itself. Strategy: SIDELINED; AWAIT CLEARER SIGNAL.
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USD/CHF
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USD/CHF – The pair was very well supported on the recent dip to 1.1165 (3Mar low) with the 50% fib retracement off of the 1.0370-1.1970 move (1.1170) and the 200-Day SMA propping. The risk from here is for a fresh upside extension back towards the range highs by 1.1970 over the coming weeks. Last Friday’s break above 1.1345 confirms bullish bias and any dips should now be supported ahead of this level. The 50-Day SMA comes in at 1.1570 and above here will once again accelerate. Strategy: SIDELINED; AWAIT CLEARER SIGNAL.
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