EUR/USD At 1.2226 In Weak Downward Trend

 1.2226

Very Short-Term Trend: Weak downtrend

Outlook: EUR/USD declined to 1.2163 but then rallied on Friday and moved above the 1.2220/30 level (and our short position was stopped out - with a nice profit). Now, the hourly chart remains negative despite this rally. What's more the hourly oscillators are currently on sell signals again. So, the downtrend from the late June's top might have resumed. But, I think it is more likely to see some sideways trading with mild upside bias for a few days here before the larger downtrend resumes. So, I expect to see gains toward 1.2300/10 either today or tomorrow before the bears take full control again....

Strategy: The hypothetical short position from 1.2390 was stopped out at 1.2230 with 160 pts profit. 

GBP/USD: 1.5547

Very Short-Term Trend: Sideways

Outlook: Friday's strong rally has negated the previous downtrend on the hourly chart and now the trend is best defined as sideways. Not to speak about the daily chart where we have a mess of overlapping moves. So, I personally prefer to step aside for a few days here.

As for the key levels - there aren't any significant key levels now. The only thing I can say is that the immediate intra-day bias is now on the upside as long as abv 1.5500. Break below 1.5500 may bring re-test on the last week's low near 1.5390.

Strategy: The hypothetical short from 1.5510 was stopped out at 1.5480 with 30 pts profit. 

USD/JPY: 79.01

Very Short-Term Trend: Weak downtrend

Outlook: USD/JPY has broken below 79.10 level but so far nothing significant has happened. The move down remains extremely choppy and the decline is so slow, that this can hardly be said to be a downtrend. Still, the main focus is now on the downside, but only as long as below 79.10/15. A move above there will simply turn the hourly chart neutral.

Strategy: Holding short from 79.10 is favored. Stop=79.20. Target=78.10.

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