•Euro defers to some consolidation in early week
•Dollar/Yen shows room for deeper setbacks ahead
•Cable extremely choppy; stand aside for now
•Dollar/Swiss well supported ahead of critical psychological barriers
|EUR/USD - After extending gains in the early session to 1.3665, the market has pulled back and trades by daily opening levels. Daily studies still however show room to run and we would expect to see a full retracement back to 1.3740 over the coming sessions. Any dips should now be well supported by the 200-Day SMA at 1.3465 which acts as former resistance turned support. Below 1.3340 will however put pressure back on the downside. 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 98.85 and 97.15 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 96.00 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. Thursday's bearish outside day was followed by Friday's strong up-day to fresh trend highs, while Monday's price action has resulted in a decent pullback. We retain no strong bias at current levels and will stand aside for now. Key levels to watch above and below come in by 1.5250 and 1.4960. Strategy: SIDELINED; AWAIT CLEARER SIGNAL.|
|USD/CHF - Setbacks have stalled just shy of critical psychological barriers by 1.1000 on Monday 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 1.1020 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 firstname.lastname@example.org and you will be added to the distribution list.
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