â€¢ Euro Carving out a Double Top?
â€¢ Japanese Yen on the Verge of Breaking a Symmetrical Triangle
â€¢ British Pound Bases for a Run to 2.0600
â€¢ Swiss Franc Directinless Trade
â€¢ Canadian Dollar Takes Out Multi-Decade Highs
â€¢ Australian Dollar Makes New Highs Targets 9100
â€¢ New Zealand Dollar Has Room to Run to the Upper Bollinger Band
Commentary: While the near term picture for the EURUSD clearly looks bullish as the pair reneters the buy zone, the upleg may be limited in scope momemtum has turend negative. The pair looks to be in process of setting a double top and only a clear break of the all time highs at 1.4283 would suggest further upside action. Thus while longs are favored they should be monitored closesly.
Strategy: Look to establish bull position near 1.4070/90, against 1.4015, target above 1.4281
Commentary: USDJPY continues to grind away in a consolidative fashion with price action compressing into an apex of a symmetrical triangle. A resolution of proce action to the upside open the possibility of 119.00 target, but failure to the downside would suggest a possible intermediate term top has been put in place.
Commentary: The hesitation in the pound action which has seen the the pair essentially hug the 2.0400 figure for the past week has frustrated both bulls and bears. For the time being however, the doji candles suugest the bias remains to the upside with the pair likely to test all time highs near the 2.0600 zone but for the bullish scenario to be confiormed it must close above 2.0450 on the dailies.
Strategy: Look to establish bull position near 2.0360/80, against 2.0256, target 2.0593
Commentary: The Swissie continues to be bounded by 1.1900 to the topside and 1.7000 to the downside as the pair grinds away in directionless trade. At present the failure at 1.1850 auguirs a test of the 1.11700 lows but the price action remains inconclusive neyond that point
Commentary: Overnight the loonie set new multi-decade highs as USDCAD slipped below 9770. However downside momentum has clearly slowed and only a break of the 9950 level would suggest a recacceleration of the downside trend. Buying USDCAD has been an exercise in frustration as the pair continued to drip lower over the past month, however given the deeply oversold nature of the move a turn should be in the offing soon.
Commentary: Aussie has taken out the 9032 prior high in overnight trade and appears ready to stage an assault on the 9100 figure. The strong upside move in priceis confirmed by a shift in momentum to the same direction and a breach of the 9050 opens the way for the bulls to ruin the unti to the big bigure. Only a reversal below the breakout level of 8970 negates the upside bias.
Commentary: The price action in the kiwi is nearly as constructive as the move in the Aussie. Havong treseatlished its bulish bias by strongly re-entring the buy zone, the kiwi can now target the Upper Bollinger Band at 7820 before finding any meaningful resitance only a close below the 1 standard deviation BB band would reverse the upside bias.