• Euro extends gains after easily taking out 1.3740 trend highs
• Dollar/Yen testing 100-Day SMA and bottom of Ichimoku
• Cable rips through 200-Day SMA and breaks above 70 on the daily RSI
• Dollar/Swiss eyes next drop to 1.0865
EUR/USD
| EUR/USD – Has finally taken out the key 1.3740 trend highs to trade just shy of 1.3800 thus far. From here, while there is scope for additional upside, we see the more medium-term risks for the formation of a top in the 1.4000 area ahead of a major USD bull run. Next key resistance comes in by 1.3850 which represents the 61.8% fib retrace off of the 1.4720-1.2455 move. We will look to sell a failure ahead of this level. Strategy: SIDELINED; AWAIT CLEARER SIGNAL |
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USD/JPY
| USD/JPY – One again testing the bottom of the Ichimoku cloud and 100-Day SMA. The market has drifted slightly below both indicators and threatens to force a bearish shift in the structure. However, we would recommend standing aside for now with the potential from here also for an upside reversal should the 100-Day and Ichimoku support on a close basis. Strategy: SIDELINED; AWAIT CLEARER SIGNAL. |
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