EUR/USD has NOT produced any follow through following the break of the 1.3500 level and we have yet to clear this on a closing basis. The market lacks the impetus currently to break higher it seems. Intraday a break below 1.3395 would be the first indication that the market was set to ease back to the 20 day ma at 1.3241. Below here will target the 1.3067/200 day ma.
EUR/JPY remains bid and has virtually reached initial target at 112.15/20, the December high and 112.32, the 200 day ma. We would allow for some profit taking here. It is worth noting that the market has not been above its 200 day ma since January 2010. Above here would target 113.55 en route to the 114.75/95 resistance.
EUR/CHF merely held sideways below its 55 day ma at 1.2955, and has now surged higher to the 1.3030/70 initial target. This is the 50% Fibonacci retracement of the move down from October and July 2010 low. We would not be surprised to see this hold the initial test. Beyond here we look for gains to the 1.3437/200 day ma.
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