Euro contemplates carving lower high or higher low. Dollar/Yen still constructive; eying 104.00 major double bottom objective. Cable looking to finally break back above 1.5000. Dollar/Swiss dips viewed as buy opportunities.
|EUR/USD - Remains locked in a multi-day consolidation since rallying to 1.3740 in mid-March. At this time it is unclear as to whether we are in the process of carving out a lower top by 1.3740 ahead of the major trend resumption, or attempting to put in a higher low above 1.3000 ahead of fresh upside beyond 1.3740. Strategy: SIDELINED; AWAIT CLEARER SIGNAL.|
|USD/JPY - We continue to favor additional upside over the coming sessions with the market having finally taken out psychological barriers at 100.00, to expose the major 87.15 double bottom objective by 104.00. Only a close back under 99.30 delays. Next key topside resistance comes in by 101.70, the 61.8% fib retrace off of the major 110.70-87.15 move (Aug08-Jan09). Strategy: SIDELINED; AWAIT CLEARER SIGNAL.|
|GBP/USD - Price action has been constructive since bottoming by 1.3655 on March 11. While the broader structure remains grossly bearish, there is the potential now for a major base taking form with a break back above 1.5000 to help confirm and accelerate gains. Look for a higher low now by 1.4580 to be confirmed on a break back above 1.5000. Above 1.5000 exposes the 1.5375 2009 highs further up. Strategy: SIDELINED; AWAIT CLEARER SIGNAL.|
|USD/CHF - Despite the latest round of sharp setbacks on Monday, our outlook remains constructive with a fresh higher low sought out above 1.1240 ahead of the next upside beyond 1.1625. As such, dips towards 1.1300 should be used as good buy opportunities in anticipation of bull trend resumption. Nevertheless, with daily studies showing neutral, we prefer to remain on the sidelines. Strategy: SIDELINED; AWAIT CLEARER SIGNAL.|
Written by Joel Kruger, Technical Currency Analyst for DailyFX.com
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