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?