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.