EUR: Buy at 1.4540, adding to 1.4485; stop well below 1.4400
Nicole Elliott from Mizuho Corporate Bank at 01/14/10
EUR
Comment: Still struggling to close above the 26-day moving average at 1.4496. Momentum is bullish and might increase, pushed by a rising 9-day average. Other major currencies confirm, looking for a weaker USD.
Strategy: Buy at 1.4540, adding to 1.4485; stop well below 1.4400. Short term target 1.4575, then 1.4800.
Comment: Interesting to see a small potential ‘head-and-shoulders’ formation, admittedly in the middle of last year’s broad range, when consensus opinion is that the Yen should weaken against all currencies this year.
Strategy: Possibly attempt small shorts at 133.25; stop above 134.55. Short term target 131.65/131.25.
Comment: Rallying to new recent highs but stuck below a large Ichimoku ‘cloud’. Note this narrows sharply by the 26th of this month so prices should be able to break through it eventually.
Strategy: Attempt longs at 1.6300, adding to 1.6235; stop well below 1.6100. Add to longs on a sustained break above 1.6310 for 1.6400, then more.
Comment: Consolidating above the 26-day moving average at 90.76 today, and below the 9-day one. Expect more of the same today prior to another drop tomorrow or next week.
Strategy: Sell at 91.70; stop above 92.35. Short term target 90.90, then 90.00.