Currencies Daily Outlook: August 13, 2012

1.2283

Very Short-Term Trend: Downtrend

Outlook:
EUR/USD is still in downtrend on its hourly chart, but that's the case only as long as the prices stay below 1.2320 level. A move below 1.2240 is needed to confirm our bearish view and to signal a decline twd this year's low at 1.2042. On the upside, above 1.2320 negates, signals a rally back twd 1.2440...

Strategy: Holding short from 1.2266 remains favored. Stop= 1.2320. Target=1.21000

GBP/USD: 1.5661

Very Short-Term Trend: Sideways

Outlook:
As expected GBP rallied to 1.5680 level on Friday. Now, it is pulling back from there and the hourly oscillators are turning negative (but honestly, they are still neutral at this stage). So, I expect to see a move lower today - back twd the lower limit of the recent range. As for the hourly chart to turn bearish, we need to see a break below 1.5570.

Strategy: Holding short from 1.5680 is favored. Stop=1.5740.

USD/JPY: 78.22

Very Short-Term Trend: Sideways

Outlook:
Nothing new to add here. The hourly chart is absolutely neutral and I have no clue when the next significant move will take place. In such conditions, I tend to avoid this market.

Strategy: Stand aside.

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