•Euro remains constructive while above 1.3550
•Dollar/Yen extend declines; 4th consecutive negative close
•Cable continues with up and down chop but sequence of daily higher lows still intact
•Dollar/Swiss needs to break back above 1.1110 to take pressure off of the downside
|EUR/USD - Has managed to extend gains again on Wednesday to 1.3725 before finally stalling out and pulling back into the latter half of the day. However, while the pair remains supported above 1.3550, we retain a mildly bullish bias and look for a full retracement of the March-April move back to 1.3740. Daily studies are approaching overbought and any moves beyond 1.3740 will likely set up a good opportunity to short the pair. Strategy: SIDELINED; AWAIT CLEARER SIGNAL.|
|USD/JPY - Daily studies are mixed but the market continues to extend declines for the 4th consecutive day. Key levels to watch above and below now come in by 96.70 and 95.60 respectively, but we do not recommend taking any positions until a clearer opportunity presents. Our strategy will be to wait for studies to either show overbought or oversold before looking to enter the market. Deeper setbacks to 95.00-95.60 are favored over the coming hours. Strategy: SIDELINED; AWAIT CLEARER SIGNAL.|
|GBP/USD - Market price action remains extremely choppy with the pair failing to show any follow through from previous daily momentum. Since last Wednesday, it has been up-down-up-down-up-down. However, consecutive daily higher lows leaves us with a mildly bullish bias and given the proximity to the 2009 highs from early January, we see no reason why this level won't be tested over the coming hours. A break back below 1.5075 will however delay the recovery structure. Strategy: SIDELINED; AWAIT CLEARER SIGNAL.|
|USD/CHF - The market has finally broken down through critical psychological barriers at 1.1000 on Wednesday to 1.0975 ahead of the latest minor bounce. It now seems as though we have entered a bearish consolidation phase ahead of the next drop below 1.0975. Below 1.0975 should open a direct retest of the 1.0865 higher low from early January. Back above 1.1110 is required to take the pressure off of the downside. 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.
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)
Cross Country - A Midday Fundamental Update, along with Technical Analysis of Selected Cross 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)