Japanese Yen Rally Causes Aussie and Kiwi to Hit Yearly Lows

  • Euro Bounces Back
  • Japanese Yen Breaks 112.00
  • British Pound Tests 1.9650
  • Swiss Franc Below 1.2050
  • Canadian Dollar Fails at 1.0800
  • Australian Dollar Erases Almost all Yearly Gains
  • New Zealand Dollar follows suit

[B]Commentary:[/B] After making a spike double bottom at 1.3367 the EURUSD appears to have stabilized and now look sto be making a retrace rally. The pair however faces a series of resistance points in its climb higher needing to clear 1.3577, 1.3621, 1.3659 and 1.3701 in order to restablish a bulish bias

[B]Strategy:[/B] A retrace rally is in the making but beware of resiatnce overhead

[B]Commentary: [/B] USDJPY is grossly oversold having stretched itself more than 500 points from the 200 period SMA but massive volatiliy in the pair creates very wide ranging bars. Still the near term bias appears to the upside as price may want to retrace bacl to the moving average before retetsting the lows

[B]Strategy:[/B] Long but cautious of massive volatility

[B]Commentary:[/B] Pound has made on of the more unique chart patterns carving out a spike bottom on the hourly time frame. The power of the reversal move has pushed the pair thropugh the initial resitance level of 1.9863 but it still faces multiple tests in its climb to higher ground.
[B]Strategy:[/B] Move to flat (previously bearish), looking for a retrace to 1.9958 to get bearish again

[B]Commentary: [/B] USDCHF presents one of the more inetersting patterns today having found support at the 200 SMA level making a higher low which suggest that the bullish bias persists in the pair. However 1.2200 remains a key objective to overcome if the pair is to sustain any upside momentum
[B]Strategy: [/B] Longs but mindful of the 1.1950 support level

[B]Commentary:[/B] The USDCAD has staged a massive reversal breaking multiple supports along the way. The price asuggests further downside action to come as bears clearly have taken control of the pair. Only a shapr retrace above the 1.0750 level invalidates the down move anf for now the target could move well within the 1.0500 range
[B]Strategy:[/B] Flat

[B]Commentary:[/B] Aussie remains in a massive downtrend with both trendline and SMA resistance . So far the upside bounce has been meager at best with pair unable to hold hourly highs. A test of the double bottom at 7673 is likely.
[B]Strategy:[/B] Flat

[B]Commentary:[/B] Kiwi imuch like the Aussie has staged a rally off the lows. However the price action in the kiwi looks to be more constructive as the pair appears to have made a bottom at 6639 and now looks to 6900 an dthen further 7000 as next levels of resistance.

[B]Strategy:[/B] Flat

  • [I]Borris Schlossberg, Senior Currency Strategist[/I]