By Zak Mir.
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.