Euro gains stall after slightly exceeding 100-Day SMA. Dollar/Yen direction unclear; compelling on both sides. Cable still corrective but approaching 50-Day SMA. Dollar/Swiss still locked in pronounced range. Dollar/Cad approaches former triangle top and rising trend-line support. Australian Dollar flirting with 100-Day SMA. New Zealand Dollar seen well capped on rallies to 0.5450.
EUR/USD
| EUR/USD – Remains constructive and continues to correct out from the recent 1.2455 lows set on March 4. The rally has however stalled out after just exceeding the 100-Day SMA on Monday to 1.3070 ahead of the latest minor setbacks. Next key topside resistance comes in by 1.3095 (9Feb high) while only back under 1.2835 negates recovery and shifts focus back on downside. Strategy: SIDELINED; AWAIT CLEARER SIGNAL. |
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USD/JPY
| USD/JPY – The market continues to consolidate since posting fresh yearly highs by 99.70 on March 5. At this point a compelling argument can be made in both camps with bulls arguing for bullish consolidation ahead of the next upside extension beyond 99.70, while bears still hold by the inter-day head & shoulders structure. The best position at present however is to remain on the sidelines until a clearer opportunity presents itself. Strategy: SIDELINED; AWAIT CLEARER SIGNAL. |
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GBP/USD
| GBP/USD – Despite the latest impressive upside moves, the current price action is still classed as corrective with the market very much confined to the overriding bear channel. The 50-Day SMA which currently comes in by 1.4345 has offered itself as formidable resistance for much of the downtrend and we would once again expect to see unsustainable gains on rallies above the 50-Day SMA. Strategy: SIDELINED; AWAIT CLEARER SIGNAL.
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