[B]Commentary[/B] - We wrote last week that “a small correction could reach the 38.2% of 168.86-160.65 at 163.79 before the next leg down.” The pair hit 163.80 last Tuesday before declining under 160.65. It is possible that a flat correction is unfolding from 160.65. In this case, expect a rally to the 164.71-165.49 area before the next leg lower.
[B]Strategy[/B] - Flat
[B]Commentary[/B] - We wrote last week that “initial support has been tested (1.6418) and a bounce towards 1.6490 is likely underway. If 1.6413 holds up, then a return to the 38.2% of 1.6686-1.6413 at 1.6517 is possible as well.” The EURCHF rallied to 1.6534 and reversed. The next leg down is underway towards at least the 100% extension of 1.6686-1.6460/1.6534 at 1.6260. A break through there gives scope to the 161.8% extension at 1.6091.
[B]Strategy[/B] - Look to get bearish close to 1.6517, against 1.6686, target TBD
[B]Commentary[/B] - We wrote last week that "it is our contention that the longer term bull market has returned and that the EURGBP is headed much higher (an objective is at .7216) in the coming weeks and months. " The EURGBP tested the .6800 figure today, which is strong evidence that the bull trend is underway. Short term support is at .6789 (38.2% of .6757-.6809. Price should remain above .6720.
[B]Strategy[/B] - Remain bullish, against …6757, targeting .7216