FX Technical Analysis
EURUSD
Comment: Dropping more than expected, giving back almost 61% of December's rally, with a 'spike low' roughly in the middle of a very large weekly Ichimoku 'cloud'. The move is seen as an A, B, C-type correction and we continue to watch for signs that the Euro will base around current levels.
Strategy: Buy at 1.3515; stop below 1.3300. Add to longs above 1.3660 and again above 1.3850 for 1.4000
Direction of Trade: →↗
Chart Levels:
| Support |
Resistance |
| 1.3430 " |
1.3543 |
| 1.335 |
1.36 |
| 1.3312* |
1.366 |
| 1.3245* |
1.3715 |
| 1.32 |
1.3840* |
GBPUSD
Comment: Exciting that we have pushed up to the top of the downward-sloping 'wedge' formation, but problems on the way up are myriad and the Ichimoku 'cloud' is massive. One step at a time.
Strategy: Buy at 1.4900; stop below 1.4700. First target 1.5000/1.5035, adding to longs on a sustained break above 1.5050 for 1.5400.
Direction of Trade: ↗
Chart Levels:
| Support |
Resistance |
| 1.4862 " |
1.494 |
| 1.48 |
1.4994 |
| 1.47 |
1.5040* |
| 1.46 |
1.5185 |
| 1.4500* |
1.525 |
USDJPY
Comment: Pushing higher for a third day in a row, retracing over 50% of prior declines, with a small 'spike high' yesterday. We shall continue to watch for signs of stalling at or just ahead of the 95.00 area and the Ichimoku 'cloud'. This is seen as a selling opportunity for declines later this quarter.
Strategy: Attempt small shorts at 93.65; stop well above 94.65. First target 93.25, then 92.25.
Direction of Trade: →↘
Chart Levels:
| Support |
Resistance |
| 93.55 " |
94.15 |
| 93.2 |
94.65* |
| 92.84 |
95 |
| 92.25 |
95.5 |
| 91.8 |
95.75* |
EURJPY
Comment: Dead in the water. This Yen cross is crawling sideways in the middle of a very large Ichimoku 'cloud' and below first retracement resistance. This may cap again today suggesting a drift down to the 26-day average at 123.45.
Strategy: Possibly attempt shorts at 126.65; stop above 129.00. First target 125.25, then 123.45
Direction of Trade: ↘
Chart Levels:
| Support |
Resistance |
| 125.80 " |
127.3 |
| 125.18 |
128.55 |
| 124.15 |
129.7 |
| 123.73 |
130.2 |
| 123.45* |
131.05* |
Mizuho Corporate Bank
Disclaimer
The information contained in this paper is based on or derived from information generally available to the public from sources believed to be reliable. No representation or warranty is made or implied that it is accurate or complete. Any opinions expressed in this paper are subject to change without notice. This paper has been prepared solely for information purposes and if so decided, for private circulation and does not constitute any solicitation to buy or sell any instrument, or to engage in any trading strategy.
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