•Euro continues to stall out after breaking key neckline support
•Dollar/Yen approaches key psychological barriers by 95.00
•Cable confined to inside trading day; deeper setbacks ahead
•Dollar/Swiss yet to break neckline of inverse h&s base
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. Inside day price action on Wednesday is merely suggestive of additional consolidation ahead of the next drop. Strategy: SIDELINED FOR NOW; LOOK TO SELL. |
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USD/JPY
| USD/JPY – Has managed to extend declines into Wednesday, with the market breaking below some shorter-term rising trend-line support and pushing towards psychological barriers by 95.00. The overall structure is looking quite heavy and deeper setbacks are seen towards 95.00. However, there is some decent internal support by the figure and with intraday studies stretched, we have opted to look to buy on a test of 95.00 on Wednesday. Strategy: BUY @95.00 FOR AN OPEN OBJECTIVE, STOP @93.75. *Recommendation to be removed if not triggered by NY close (5pm ET) on Wednesday. |
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