Zak Mir on Euro/Dollar, Euro/Sterling & Dollar/Yen

By Zak Mir.

Key FX Crosses:

Euro/Dollar: 

• Euro very much alive despite “dead by the end of the year” threats since 2010.
• U.S. shutdown a focus for bulls of single currency.
• June rising trend channel based at 20 day moving average at $1.3617
• Target towards 2013 resistance line projection as high as $1.44 by end of this year. 

Euro/Sterling: 

• Sterling perhaps a surprising short against Euro
• Recent 50 day moving average cross through rising 200 day moving average could be run up to golden cross buy signal for November
• Target as high as 89p by the end of this year if “golden” scenario pans out. 

Dollar/Yen: 

• Converging triangle formation on daily chart threatens one year revival.
• May resistance at 50 day moving average level of 98.38 capping the price action.
• Below 97 threatens a worst case scenario breakdown towards 90.
• Perhaps 95 – 98 consolidation may eventually be winning scenario?