Zak Mir on currency majors EURUSD, GBPUSD & JPYUSD

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By Zak Mir.


Currency Majors:

We have an uneasy truce as far as leading currencies are concerned, with the Euro and Sterling attempting to regroup versus the U.S. Dollar. However, it would appear that Dollar / Yen has completed its near term consolidation and is set to rally well above the 100 level.

Euro / Dollar:  

  • Retracement in run up to interest rate cut looks to be over.
  • Support so far well above 200 day moving average at $1.3214 is a positive.
  • While above 200 day line still leaves door open to best levels of the year / $1.38 

Sterling / Dollar: 

  • Probable extended bull flag in place since September.
  • Likely May support line coming in towards $1.58
  • Momentum buy trigger an end of day close above 50 day moving average at $1.6014 to target top of May channel at $1.64. 

Dollar / Yen: 

  • Bull argument backed by double October bounce off rising 200 day moving average at 97.83.
  • Break of both converging May triangle resistance and 50 day moving average at 98.48.
  • Above this new notional double support zone one would target a May resistance line projection as high as 107 by the end of 2013. 

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