• Euro well supported on dips; eyes 2009 highs
• Dollar/Yen well supported ahead of 93.55
• Cable eyes test of psychological barriers at 1.6000
• Dollar/Swiss approaching 78.6% fib retrace of major move
EUR/USD
| EUR/USD – With the daily RSI above 70.0 and overbought, the risks from here are for a material pullback over the coming days. However, the 2009 highs are just above at 1.4060 and we would expect to see this level to be taken out before considering the start to a major pullback. The market is currently trading in an inside day on the lightened Monday trade. The key level to watch below comes in by 1.3890 with a break to accelerate declines and confirm short-term topping. Strategy: SIDELINED; AWAIT CLEARER SIGNAL |
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USD/JPY
| USD/JPY – The market has been well offered over the past several days but setbacks have now stalled out just shy of next key support by 93.55 from March, which guards against the critical 87.15 multi-year trend lows. Friday’s bullish close has been followed by some upside on Monday to break a sequence of consecutive daily lower highs and lower lows. This could now suggest that an interim base is in place by 93.85 ahead of a bounce back towards 96.70 over the coming days. Below 93.85 negates. Strategy: SIDELINED; AWAIT CLEARER SIGNAL. |
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