EUR/USD:
EUR/USD" title="EUR/USD" width="640" height="221">
EUR/USD:
1.2929
Short-Term Trend: weak downtrend
Outlook:
Finally the prices have moved abv the declining 21-day moving average and the current downtrend has weakened. What's more the daily oscillators have moved on buy singlas, rising from previously oversold levels. Thus, the long side is favored now. To-recap, I turned bearish in December at 1.34/1.35 area and covered at the 1.2870 support. Now, I think it is time to try the upside for a move higher twd 1.3520/1.3720 area.
On the downside, only firm and sustained trading below 1.2670 negates, risks decline twd 1.2350...
Strategy: Longs favorable on minor publlback with a stop below 1.2670. Target=1.3520.
GBP/USD:
GBP/USD: " title="GBP/USD: " width="640" height="221">
GBP/USD: 1.5573
Short-Term Trend: weak downtrend
Outlook:
If our Ending Diagonal idea is correct, then one more move lower twd 1.5260 (possibly to just below 1.5200) will be seen followed by a violent rise twd 1.61/1.62. But I cannot rule out the possibility that wave (D) has already ended.
Right now I can't see a compelling trading opportunity. If however, a decline twd 1.5260 develops, longs will be favored for a 10-point move higher.
Strategy: Stand aside.
USD/JPY:
USD/JPY:" title="USD/JPY:" width="640" height="221">USD/JPY:
76.98
Short-Term Trend: weak downtrend
Outlook:
Almost nothing has changed as the pair has traded in a very tight range for the past week or so. The daily chart is still slightly bearish, but a move below 76.50 is needed to signal the next leg lower twd 74.50.
On the upside, a sustained trading abv 77.30 will indicate that our analysis is likely wrong. For that reason, I think stops can be lowered to 77.50 or so.
Strategy: Holding short from 77.80 is favored. Stop=77.50. The downside target is near 69.00 eventually.