EUR/USD
EUR/USD" title="EUR/USD" width="640" height="385">EUR/USD:
1.3319
Short-Term Trend: Uptrend
Outlook: EUR/USD traded in a tight range between 1.3250 and 1.3400 last week consolidating the previous strong gains. The daily chart remains quite bullish as the prices remain above the rising 21-day moving average and above the 1.3195 Fibonacci level. Thus, a new move higher toward 1.3520 and 1.3720 is expected this week.
On the downside, a decline below 1.3195 will negate and will raise serious doubts in the presented wave count....
Strategy: Holding long from 1.3320 is favored against 1.3150. Target=1.3720.
GBP/USD
GBP/USD" title="GBP/USD" width="640" height="385">
GBP/USD: 1.5866
Short-Term Trend: Sideways
Outlook: GBP moved decisively lower last week and thus strengthened our bearish case. As you can see from the chart above, we now have a clear breakout below the trendline connecting the ending points of waves B and D. But we still need a move below 1.5820 (the end of wave D) to confirm the trend change. If that happens, a decline toward 1.5680 level can easily unfold.
On the upside, above 1.6100 will negate this bearish view and will suggest one more rally toward 1.6300 before the expected big move down starts.
Strategy: Holding short from 1.6170 is favored. Stop=1.6350.
USD/JPY
USD/JPY" title="USD/JPY" width="640" height="385">
USD/JPY: 90.08
Short-Term Trend: Uptrend
Outlook: There was a small pullback last week right to 87.80 level (it is a pity but a week ago I decided to raise our hypothetical stop to this level) but than the pair resumed its advance and moved to new highs for the current bull market. There is now some divergencies between the prices and the daily oscillators but for the time being the uptrend remains quite strong as the prices trade firmly above the rising 21-day moving average.
So, higher prices toward the next Fibonacci level at 93.12 can be expected. On the downside, move below 87.80 will signal that a much needed consolidation (correction) of the recent strong gains is finally under way....
Strategy: The hypothetical long from 81.30 was stopped out at 87.80 with 650 pts profit. Stay out for now.