• Euro exceeds 70 on daily RSI; poised for needed pullback
• Dollar/Yen reverses sharply to almost fully negate Friday's price action
• Cable gains unrelenting as the market approaches 1.6500; RSI above 80
• Dollar/Swiss setbacks stall just shy of 2009 lows
EUR/USD - Could finally be showing signs of a top with the daily RSI crossing above 70 and the market reaching the 78.6% fib retracement off of the major 1.4720-1.2455 move at 1.4235. A daily close near or below 1.4160 would provide added confirmation and we would look to build shorts at current levels in anticipation of a major pullback. Strategy: SELL @1.4145 FOR A 1.3930 OBJECTIVE, STOP 1.4260.
USD/JPY - The market has been well offered over the past several weeks but setbacks have now stalled out just shy of next key support by 93.55 from March, which guards against the critical 87.15 multi-year trend lows. Friday's bearish price action has been nearly negated on Monday to suggest that an interim base is in place by 93.85 ahead of fresh upside beyond 97.25. Only back under 94.45 shifts focus back to downside. Strategy: SIDELINED; AWAIT CLEARER SIGNAL.
GBP/USD - We have been looking for opportunities to be short of this pair as well, and have established a fresh short on Monday after gains showed signs of stalling above 1.6400. Shorter-term, hourly studies are overbought and the daily ATR (
USD/CHF - After finally trading down to 30 on the daily RSI, the market could be looking for a much needed and healthy corrective rally. Setbacks on Monday stalled out just shy of the 2009 lows by 1.0610 and the market has since recovered back to daily opening levels by 1.0670 to potentially set up a doji close. Look for a break back above 1.0725 to accelerate gains and confirm short-term basing, while below 1.0610 opens deeper setbacks towards next key support by 1.0370, the late December lows. Strategy: SIDELINED; AWAIT CLEARER SIGNAL.
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 firstname.lastname@example.org and you will be added to the distribution list.
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