The EURUSD took out our stop yesterday as short term momentum clearly turned bullish. The pair now sets up for retest of all time highs at 1.5900 with near term support at 1.5725 and then further at 1.5600. Only a definitive break of the 1.5600 negates the bullish bias.
Visit our recently updated Euro Currency Roomfor specific resources geared towards this currency.
[B]STRATEGY[/B]: None
Yesterday we noted that, “The last bastion of support lies at 98.50 and should that give way, the pair likely to be headed towards our stop at 97.66. Today that support has held so far and as long as it is not challenged our upside view remains unchanged.
Visit our recently updated Yen Currency Roomfor specific resources geared towards this currency.
[B]STRATEGY[/B]: Bullish against 97.66, target 102
Nothing has been more treacherous to trade than the price action in the GBPUSD over the past 24 hours. The pair has likely taken out both longs and shorts as its whipsaw moves and then a break out above 2.0100 must have wrong footed many traders. The near term price action remains bullish but the 2.0200 figure may prove to be more difficult to take out.
Visit our recently updated British Pound Currency Room for specific resources geared towards this currency.
[B]STRATEGY[/B]: Bearish, against 2.0271, target 1.9540
The Swissie came within 10 pips of hitting our stops but has since recovered. The near term price action looks more constructive though still strongly skewed to the downside and our stops may be in danger once again.
[B]STRATEGY[/B]: Bullish, against .9868, target 1.07
We stated yesterday that having breached the 1.0100 level USDCAD now stands at critical juncture. Yet the pair saw no follow through and its channel has now compressed to an extremely low volatility range of 1.0230-1.0100. Such compression usually precedes a sharp break out and a move through either the top or the bottom barriers is likely to have some sustaining momentum
Visit our recently updated Canadian Dollar Currency Roomfor specific resources geared towards this currency.
Aussie continues to look constructive to the topside having cleared the 61.8 Fib of the most recent bear wave. However 9250 remains formidable resistance but as we noted yesterday, “a clean break of 9250 suggests a run to the 9350 recent highs.”
Much like the loonie, the kiwi remain in an extremely narrow channel of just 50 points as the pair struggles for direction. 8100 remain the key area to the upside as evidenced by yesterday’s spike high and until it is broken conclusively the downside bias remains in place.
[B]STRATEGY[/B]: Bearish, against .8173, target TBD