Euro stalls ahead of 1.3600 and puts in bearish outside day. Dollar/Yen extends gains; eyes key 61.8% fib retrace. Cable stalls by Upper Bollinger and ahead of 1.4990. Dollar/Swiss bounces from 200-Day SMA; bullish outside day. Dollar/Cad well propped by rising channel support. Australian Dollar tracks lower after bearish doji formation. New Zealand Dollar showing potential for bearish gravestone doji.
EUR/USD
| EUR/USD – Monday’s rally has stalled out just shy of the 78.6% fib retrace off of the 1.3740-1.3115 move to open the latest sharp pullback, setting up a bearish outside day. While daily studies are mixed and offer no clear directional bias, Monday’s bearish set-up suggests that deeper setbacks are in the cards. Look for a move back towards 1.3220 over the coming sessions. Only back above 1.3585 negates. Strategy: SIDELINED; AWAIT CLEARER SIGNAL. |
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USD/JPY
| USD/JPY – We continue to favor additional upside over the coming sessions with the market having finally taken out psychological barriers at 100.00, to expose the major 87.15 double bottom objective by 104.00. Only a close back under 99.35 delays. Thursday’s close above the 200-Day SMA (first time since September 2008) reaffirms bullish outlook. Next key topside resistance comes in by 101.70, the 61.8% fib retrace off of the major 110.70-87.15 move (Aug08-Jan09). Strategy: SIDELINED; AWAIT CLEARER SIGNAL. |
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GBP/USD
| GBP/USD – Gains have stalled out on Monday after failing shy of key short-term resistance by 1.4990 from February 9. Monday’s high also coincides with the upper Bollinger, and the market could now be poised for a resumption of the broader downtrend by the loose bear channel top. Look for a break below 1.4650 to confirm and accelerate declines. Only back above 1.4960 negates. Strategy: SIDELINED; AWAIT CLEARER SIGNAL.
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USD/CHF
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USD/CHF – Setbacks continue to be very well supported by the 200-day SMA with a bullish outside day now in the works for Monday after the pair also managed to bounce from the 78.6% fib retrace off of the 1.1165-1.1550 move. From here we see risks for a resumption of gains back above 1.1500 and through the recent trend highs at 1.1550. Only back under 1.1165 negates outlook and gives reason for pause. Strategy: SIDELINED; AWAIT CLEARER SIGNAL.
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