•Euro looking to carve out fresh lower top ahead of next drop
•Dollar/Yen confined to inside day price action
•Cable mirrors Wednesday price action following whipsaw trade
•Dollar/Swiss well supported on dips; look to buy
EUR/USD
| EUR/USD – Not yet ready to break down after triggering a major head & shoulders top on Monday. The market has since been gradually pushing higher and looks set for a test of falling trend-line resistance off of the 2009 highs which currently comes in by 1.4050. From there, we see a lower top taking form ahead of the next downside extension through 1.3750. Only back above 1.4175 however, gives reason for concern. Strategy: SIDELINED FOR NOW; LOOK TO SELL. |
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USD/JPY
| USD/JPY – Although price action on Thursday is still confined to an inside day, the moves have been quite constructive and the market could be attempting to carve out a fresh higher low above 94.45 ahead of the next upside extension beyond 98.90 and eventually through psychological barriers by 100.00. However it is too early to tell at this juncture, and we will remain sidelined until a clearer opportunity presents itself. Strategy: STAND ASIDE; AWAIT CLEARER SIGNAL. |
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