The British pound has continued to move higher and previous resistance at 1.5670 was penetrated, the bullish cross-over of the Tenkan-Sen above the Kijun-Sen also suggest low has been formed at 1.5234, so bullishness is seen for retracement of recent decline to previous resistance at 1.5775, then test of the upper Kumo (now at 1.5788), above there would extend gain to 1.5811 (61.8% Fibonacci retracement of 1.6167-1.5234) and possibly 1.5890-00.

Last week’s sustained breach below the Ichimoku cloud bottom as well as previous support at 0.9245 add credence to our view that a temporary top has been formed at 0.9595 and consolidation with downside bias remains for retracement of recent upmove to previous support at 0.9067, however, a daily close below the Ichimoku cloud bottom (now at 0.9058) is needed to confirm, bring retracement of recent upmove to psychological support at 0.9000.

The single currency moved higher in line with our expectations and tested the Ichimoku cloud bottom last Friday, the bullish cross-over of the Tenkan-Sen above the Kijun-Sen signals a temporary low has been formed at 1.2624 and consolidation with upside bias remains for retracement of recent downtrend to 1.3244 (38.2% Fibonacci retracement of 1.4248-1.2624) and possibly 1.3300, however, upside should be limited to 1.3400

Despite last week’s rise to 78.29, failure to penetrate this resistance and the subsequent sharp retreat formed a shooting star on the daily chart, followed by a long black candlestick and these pattern painted a pretty bearish picture for the time being, suggesting a test of support at 76.55 cannot be ruled out, however, only a daily close below this level would shift risk to downside for further weakness to 76.00.

The single currency only eased to 98.90 on Monday (we recommended to buy euro again at 98.55) before finding renewed buying interest there (just above the Tenkan-Sen) and the single currency rallied again from there in line with our expectations to as high as 102.21 yesterday, adding credence to our view that a temporary low has been formed at 97.04. The indicated bullish pattern, Three White Soldiers, were taking effect throughout this week.

The currency pair finally penetrated support at 1.0052 on broad-based weakness in the greenback, suggesting the decline from 1.0524 is still in progress and although price has recovered from yesterday’s low of 0.9981, upside should be limited and bearishness remains for another decline, break of said support would extend the aforesaid fall towards 0.9900, however, as broad outlook remains consolidative, support at 0.9892 should remain intact

Cable’s rebound from .15234 turned out to be stronger than expected and the breach of Kijun-Sen suggests a temporary low has been formed at 1.5234 and upside risk is seen for correction of recent decline, however, only a daily close above 1.5775-88 (previous resistance and current level of the Ichimoku cloud top) would add credence to this view, bring further gain to 1.5810-15

Dollar’s stronger-than-expected retreat signals a temporary top has been formed at 0.9595 and consolidation with downside bias is seen for retracement of recent upmove to previous support at 0.9067, however, a daily close below the Ichimoku cloud bottom (now at 0.9059) is needed to add credence to this view, bring retracement of recent upmove to psychological support at 0.9000.

The single currency held above previous support at 1.2624 and has continued to rebound throughout last week and a series of white candlesticks were formed on the daily chart, the subsequent breach of the Kijun-Sen signals a temporary low has been formed at 1.2624 and consolidation with mild upside bias is seen for retracement to 1.3100 and possibly 1.3150, however, upside is likely to be limited to previous resistance at 1.3199

Despite falling briefly to 76.55 last week, the subsequent rebound from there formed a ‘doji’ star on the daily chart with a relatively long lower shadow, suggesting low is possibly formed there and consolidation with upside bias is seen another test of this resistance, however, a daily close above there is needed to signal the retreat from 79.55 has ended, then a stronger rebound to 78.55-60 would follow.

Unfortunately the single currency fell marginally to 97.04 (took out our raised stops at 97.20) before staging the long anticipated rebound this week, the three consecutive white candlesticks formed on the daily chart and this bullish pattern – Three White Soldiers together with the breach of the Kijun-Sen suggests a temporary low is possibly formed there and consolidation with upside bias is seen for retracement of recent decline to 100.36

Despite yesterday’s brief fall to 1.0071, as the indicated support at 1.0052 has held, retaining our consolidative view and as long as this support level remains intact, mild upside bias is seen for another rebound to the Tenkan-Sen (now at 1.0195), then the Kijun-Sen (now at 1.0243) and possibly the upper Kumo (now at 1.0275) but break of resistance at 1.0320 is needed to signal the retreat from 1.0423 has ended

Although the single currency retreated after faltering below the Kijun-Sen, as euro has rebounded again after holding above previous support at 0.8222, retaining our view that a minor low is formed there and consolidation with mild upside bias is seen for retracement towards 0.8422 (previous resistance), however, renewed selling interest should emerge there and bring another decline later.

Although the single currency has continued to move lower and the corrective decline from 1.2475 temporary top may bring retracement of recent upmove to 1.2050, however, still reckon support at 1.2000 (SNB’s minimum rate) would hold and bring another rebound later. Above 1.2195-00 would bring test of the Kijun-Sen (now at 1.2230) but a daily close above this line is needed to signal low is in place, bring test of the Ichimoku cloud bottom

The British pound faltered below the Tenkan-Sen and fell again to a low of 1.5234 late last week, however, lack of follow through selling on the break of previous support at 1.5270 and the subsequent rebound suggest consolidation above this level would take place and recovery to the Tenkan-Sen (now at 1.5431) would be seen, above there would bring retracement of recent decline to the Kijun-Sen

Despite rising to 0.9575, lack of follow through buying and the subsequent retreat from there formed a ‘doji’ star on the daily chart and yesterday’s black candlestick just painted a rather bearish picture and suggest further consolidation below recent high of 0.9595 would be seen and test of the Kijun-Sen (now at 0.9420), then previous support at 0.9407 cannot be ruled out.

The single currency has resumed recent downtrend after meeting renewed selling interest around the Tenkan-Sen and as price has remained under pressure, suggesting the medium term downtrend is still in progress and further fall to indicated downside target at 1.2611 (50% projection of 1.3199-1.2662 measuring from 1.2879) but reckon 1.2545-50 (61.8% projection) would limit downside

Although the greenback rebounded after falling to 76.66 last week and consolidation with mild upside bias is seen for another bounce to 77.34, a daily close above the Ichimoku cloud (now at 77.55-57) is needed to retained bullishness and signal low has been formed at 76.61, bring a stronger rebound to 78.00 and then test of strong resistance at 78.29.

Despite falling to 97.28 earlier this week, as the single currency has rebounded after finding good support there, suggesting consolidation above this level would take place and mild upside bias remains for test of the Tenkan-Sen (now at 98.80), a daily close above there would bring retracement to 99.00 and possibly 99.65-70 but reckon psychological resistance at 100.00 would limit upside