The EURUSD is in danger of tracing out an outside reversal day which is generally a bearish omen suggesting a turn of trend.
The EURUSD is in danger of tracing out an outside reversal day which is generally a bearish omen suggesting a turn of trend. Nevertheless, unless our stop of 1,5464 is broken support should hold and we remain constructive on the pair.
Visit our recently updated Euro Currency Room for specific resources geared towards this currency.
STRATEGY: Bullish, against 1.5464, target above 1.5843
Despite the near term rally that took the pair higher by nearly 100 points today, USDJPY remains range-bound with 108.50 still creating a massive ceiling of resistance, 107.00 acts as first level of support with 106.50 serving as the next support zone. We continue to be on the side lines watching the price action.
Visit our recently updated Yen Currency Room for specific resources geared towards this currency.
As we noted on Friday, “We still expect a push through 1.9850 by July but near term, the probability of a corrective decline is high as suggested by the 5 waves up from 1.9469. As such, it is wise to lighten up on longs. We’ll look for support next week beginning at 1.97.” With 1.9700 support broken in the corrective wave the next area of support lies at 1.9571 and the n further at 1,9480. Cable is in danger of carving out a full reversal, but as long as support holds we remain bullish on the pair.
Visit our recently updated British Pound Currency Room for specific resources geared towards this currency.
STRATEGY: Bullish, against 1.9469, target above 1.9850 (BUT lighten up on longs as the probability of a correction is high)
Swissie continues to exemplify range behavior with 1.0480-1.0520 marking the upper zone while 1.0320-1.3000 capping the lower zone. Until such time that either level is taken out of with conviction the easiest trade appears to be fading the rallies and buying the dips. We are sidelined looking for more directional clues to develop.
Volatility compression continues to be the story in USDCAD as the pair churns its way between 1.0200 and 1.0100 and Bollinger Bands continue to narrow. We remain bullish targeting a move above the 1.0300 figure and are encouraged by a series of higher lows over the past 72 hours.
Visit our recently updated Canadian Dollar Currency Room for specific resources geared towards this currency
STRATEGY: Bullish, against .9818, target above 1.0324 (but should be in a small position now since the triangle is unfolding, add to longs below 1.00)
Having found serious resistance at 9550, the Aussie now trails back to 9500 support. A break here would be ominous to our bullish view and could possibly expose our stop of 9402. We however continue to remain long and if the pair can stabilize at these levels its chances of resuming its upward trend will increase markedly.
STRATEGY: Bullish, against .9402, target TBD
As we noted on Friday, “Given the counts in the other USD pairs, we do not think that the NZDUSD advance from .7445 is complete but a sizeable correction is probably underway. The rally from .7445 consists of 2 nearly equal waves (a-b-c) and could be wave A of a flat. Bigger picture, the NZDUSD is expected to advance to the 50% of .7921-.7445 at .7683 and perhaps even the 61.8%-78.6% at .7740-.7920. A rally to there would fill the 6/4 gap.” And indeed today the pair has entered the Bollinger Band sell zone and is on the verge of breaking its upward trendline created by past week’s price action. It looks, therefore quite vulnerable to a further move down.
STRATEGY: EXIT
Tell us what you think about this report: contact the strategist about the article at <[email protected]>