• Euro double top
• Dollar/Yen bouncing
• Cable breaks lower
• Dollar/Swiss double bottom
EUR/USD – Although it would not be conventional, there is the risk for the formation of a short-term double top on the daily chart, with a break below 1.4480 over the coming days to confirm and accelerate declines back towards 1.4400. Daily studies are looking quite heavy and a break below 1.4645 should get things moving to the downside. Ultimately, only back above 1.4845 negates. STRATEGY: STAND ASIDE
USD/JPY – A strong bullish reversal day on Friday has been met with some good positive follow through thus far on Monday, with gains so far extending back above the 20-Day SMA. Nevertheless, the overriding structure remains quite bearish and any rallies should be used as opportunities to build on exiting short positions. Ultimately, we favor a drop to retest critical support by 87.15 at a minimum. [B]STRATEGY: STAND ASIDE FOR NOW; LOOK TO SELL
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GBP/USD – The latest bout of bearish consolidation has been confirmed with the market trading below 1.5770 to now open a fresh downside extension. Next support comes in by 1.5645 which represents the lower Bollinger, while deeper setbacks are ultimately seen back towards 1.5000 over the coming weeks. The 1.5000 level is the measured move objective off of the major head & shoulders top that triggered in the previous week. [B]STRATEGY: STAND ASIDE FOR NOW; LOOK TO SELL
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USD/CHF – There is the risk for the formation of a short-term double bottom on the daily chart, with a break above 1.0455 over the coming days to confirm and accelerate declines back towards the 1.0700-1.0800 area. Daily studies are starting to turn up and a break above 1.0360 on Monday should get things moving to the upside. Ultimately, only back below 1.0185 negates. STRATEGY: STAND ASIDE
Written by Joel Kruger, Technical Currency Strategist for DailyFX.com
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