• 50-Day SMA continues to support the range-bound Euro
• Dollar/Yen faces trend line support, possible lower top formation
• Cable still supported by 50-Day SMA, potential sell opportunity
• Dollar/Swiss remains range-bound awaiting a break-out
EUR/USD - Very well supported by the 50-Day SMA this week to open the latest bounce back into the 1.4300's thus far. The market now trades in the middle of a recent range, and it is too difficult to make any calls in the shorter-term with both a full retracement back to the 1.4450 2009 highs or a pullback below 1.4085 plausible. As such, we continue to stay on the sidelines until a clearer opportunity presents. STRATEGY: STAND ASIDE; AWAIT CLEARER SIGNAL
USD/JPY - Back to testing rising trend-line support off of the 91.75 recent trend lows with the market stalling just ahead of 95.00 for now by the 20-Day SMA. Our outlook is neutral with either a higher low potentially looking to carve out ahead of fresh upside beyond 98.00, or a lower top by 97.80 ahead of a break below 94.00 to end recovery structure and put pressure back on the downside. STRATEGY: STAND ASIDE; AWAIT CLEARER SIGNAL
GBP/USD - This market has also been well propped on setbacks towards the 50-Day SMA with a doji close on Wednesday being followed by some constructive price action on Thursday. Back above 1.6665 should now accelerate gains towards the recent 2009 highs by 1.7045, while below 1.6390 will force a material shift in the medium-term bullish structure. We have a sell order in place by 1.6715 for Thursday but do not anticipate the trade will trigger by the 5pm ET expiration. STRATEGY: SELL @1.6715 FOR AN OPEN OBJECTIVE, STOP 1.6915. RECOMMENDATION TO BE REMOVED IF NOT TRIGGERED BY NY CLOSE(5PM) ET ON THURSDAY
USD/CHF - Continues to chop around within a very well defined multi-week range with the price currently locked in the middle of said range. No reason to be taking any positions here and will only consider playing the pair on a break towards the range lows or retest of the range highs. STRATEGY: SIDELINED FOR NOW; AWAIT CLEARER SIGNAL
Written by Joel Kruger, Technical Currency Strategist for DailyFX.com
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