•Euro consolidates latest setbacks ahead of next drop
•Dollar/Yen pulls back sharply to clear key support; bias still constructive
•Cable puts in bullish outside day; but no upside follow through expected
•Dollar/Swiss sees choppy session of directionless trade
EUR/USD
| EUR/USD – The much talked about head & shoulders top developing over the past few weeks has finally triggered on Monday and now projects additional declines towards 1.3250 over the coming weeks. Look for any rallies to now be very well capped by 1.4000, ahead of a drop back to challenge next support in the 1.3585-1.3730 area. Despite Monday’s mild rebound, the market has managed to put in a fresh daily lower low and lower high to keep the pressure firmly focused on the downside. Strategy: SIDELINED FOR NOW; LOOK TO SELL. |
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USD/JPY
| USD/JPY – The market has been in rally mode since basing out by 93.85 in Mid-May, putting in a series of higher highs and higher lows. A fresh higher low is now sought out above the June 1, 94.45 low, to be confirmed on a break back above 98.90 over the coming sessions. Today’s sharp intraday pullback leaves hourly studies oversold, and with the daily ATR (Average True Range) already well exceeded, and the market testing rising trend-line support, the risks from here are for renewed strength and as such, we have acted accordingly. Position: LONG @96.35 FOR AN OPEN OBJECTIVE, STOP @95.25. |
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