• Euro gains stall ahead of 2009 highs; sidelined for now
• Dollar/Yen attempting to carve lower top ahead of next drop
• Cable could be in the process of carving right shoulder
• Dollar/Swiss still locked in choppy multi-day consolidation
EUR/USD - Price action on Tuesday has been less than compelling with the market pressing higher to 1.4280 before settling back in the 1.4200 area. From here, a likely retest of the 2009 highs at 1.4340 is seen with daily studies still showing plenty of room for additional upside. However, overall trade remains quite choppy and we would also not rule out the possibility for a push towards 1.4340 ahead of a topside failure that opens a bearish resumption back towards 1.3750 over the coming days. STRATEGY: SIDELINED FOR NOW; AWAIT CLEARER SIGNAL
USD/JPY - Remains locked in a downtrend off of the yearly highs by 101.45 and a lower top is now sought out below 97.00, potentially at 94.80 ahead of the next drop. Look for the 20-Day SMA by 94.75 to cap any additional gains on a close basis ahead of a of a retreat back below 91.75 and towards the critical 87.15 matched trend lows over the coming days and weeks. Tuesday's bearish price action helps to reaffirm outlook. STRATEGY: STAND ASIDE; LOOK TO SELL
GBP/USD -Despite the recent rally back into the 1.6500's we do not rule out the potential for a failure ahead of 1.6745 as we still hang on to the possibility for the formation of the right shoulder of a very loose and messy head & shoulders top. The bearish price action on Tuesday helps to reaffirm although the market still remains confined to the previous daily range. In the interim, we will remain sidelined until a clearer opportunity presents. STRATEGY: SIDELINED FOR NOW; LOOK TO SELL
USD/CHF - In the process of attempting to carve out a meaningful medium to longer-term base by 1.0590. However a period of choppy consolidation still needs to be convincingly broken to the topside to confirm basing prospects and open a recovery extension back towards the 1.1500 area. The key level to watch above comes in by the recent highs at 1.1025 and break of this level will help to confirm our bullish outlook. A break back under 1.0590 will however delay. STRATEGY: SIDELINED FOR NOW; LOOK TO BUY
Written by Joel Kruger, Technical Currency Strategist for DailyFX.com
If you wish to receive Joel's reports in a more timely fashion, e-mail email@example.com and you will be added to the distribution list.
Joel Kruger publishes 6 daily pieces:
Tech Talk - A Daily Video Highlighting Technical Developments in the Overnight Session of Trade.
Monday-Friday (between 5:30am-6:30am EST)
Morning Slices - Morning Overview using Fundamental, Technical, Flow, and Quantitative Analysis (Includes Trade of the Day).
Monday-Friday (between 6:30am-7:30am EST)
Indicator of the Day - A Feature Report that Highlights our Most Significant Technical Indicator of the Day.
Monday-Friday (between 8:00am-9:00am EST)
Midday Snapshot - A Midday Fundamental Update, along with Technical Analysis of Selected Rates.
Monday-Friday (between 10:30am-11:30am EST)
Scandi Daily - A Specialized Daily Fundamental and Technical Overview of the Nordic Currencies. (This report is only distributed through email. Please contact Nordic@fxcm.com if you would like to be added to distribution.)
Monday-Friday (between 11:30am-12:30pm EST)
Daily Classical - A Daily Technical Overview of the Major Currencies.
Monday-Friday (published between 2:00pm-3:00pm EST)