•Euro pulls back sharply and could be looking for bearish reversal
•Dollar/Yen eyes retest of recent trend lows by 95.60
•Cable gains stall just ahead of 1.5375 2009 highs
•Dollar/Swiss well supported ahead of critical psychological barriers
|EUR/USD - Has managed to extend gains on Tuesday to 1.3710 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. We had recommended a short trade by 1.3795 earlier today and do not expect this to be triggered. Strategy: SIDELINED; AWAIT CLEARER SIGNAL.|
|USD/JPY - Daily studies are mixed and the market continues to chop around with no clear directional bias. Key levels to watch above and below now come in by 97.85 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. A closer look at the daily chart does seem to favor a bearish bias with a head & shoulders-like top which projects deeper setbacks to 95.00-95.60 over the coming session. 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. 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 1.5065 will however delay the recovery structure. Strategy: SIDELINED; AWAIT CLEARER SIGNAL.|
|USD/CHF - Setbacks have stalled just shy of critical psychological barriers by 1.1000 on Tuesday with the market rallying back above 1.1100 thus far. Initial obstacles come in by 1.1165, former support turned resistance, with a break above to accelerate back towards 1.1245. Back under 1.1000 however opens next drop towards 1.0865. 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 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)
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)