FX Technical Analysis
EURUSD
Comment: Going nowhere, no doubt leaving the very many Euro-sellers frustrated. This chart has a potential 'rounded bottom' forming, and needs a close above the 26-day moving average at the very least to turn momentum bullish. We continue to watch for signs of forming an important long term interim low.
Strategy: Attempt small longs at 1.3575; stop below 1.3400. Add to longs on a sustained break above 1.3750 for 1.3800/1.3840
Direction of Trade: →
Chart Levels:
| Support |
Resistance |
| 1.3560 " |
1.3655 |
| 1.353 |
1.37 |
| 1.346 |
1.3736/1.3742* |
| 1.3433* |
1.38 |
| 1.3400* |
1.384 |
GBPUSD
Comment: Bearish momentum is even stronger than we had thought so that Cable has been pushed lower by a downward-sloping 9-day moving average and is now struggling to hold above the 1.4950 area. We still feel it will re-test 1.520 later this week.
Strategy: Attempt small longs at 1.4940; stop well below 1.4900. Add to longs on a sustained break above 1.5240 for 1.5300 and then 1.5500.
Direction of Trade: →
Chart Levels:
| Support |
Resistance |
| 1.4926 " |
1.5064 |
| 1.49 |
1.5136 |
| 1.4855 |
1.5200* |
| 1.48 |
1.5240* |
| 1.4781** |
1.53 |
USDJPY
Comment: Little to add as we trade in a series of small random moves inside the Ichimoku 'cloud', currently holding between the two moving averages. We can look forward to more of the same today.
Strategy: Trade the range between 91.00 and 89.00
Direction of Trade: →
Chart Levels:
| Support |
Resistance |
| 89.85 " |
90.14 |
| 89.63 |
90.33 |
| 89.40/89.30* |
90.50/90.69 |
| 89 |
91 |
| 88.8 |
91.60* |
EURJPY
Comment: Slow and uninspiring as we consolidate above the psychological level at 120.00 and 'channel' support. Currently holding between the moving averages but a daily close above the 26-day one should trigger a small short-squeeze to 125.00.
Strategy: Attempt small longs at 122.40; stop below 121.00. Add to longs on a sustained break above 123.50 for 125.00
Direction of Trade: →
Chart Levels:
| Support |
Resistance |
| 121.85 " |
123.1 |
| 121.45 |
123.34* |
| 121.25 |
124 |
| 120.9 |
125 |
| 120.00* |
126 |
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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