FX Technical Analysis EURUSD

Daily Forex Technicals | Written by Mizuho Corporate Bank | May 08 09 06:40 GMT |

Comment: Will we ever get lift-off? Bouncing again from the top of the 'cloud' and the nine-day moving average, squeezing to a new recent high at 1.3471. Similar patterns can be seen in a series of major currencies suggesting generalised US dollar weakness this month and eventually the Euro should be dragged higher. A weekly close above 1.3600 should add significantly to current bullish momentum. Strategy: Buy at 1.3400, adding to 1.3245; stop below 1.3090. Add to longs on a sustained break above 1.3475 for 1.3575/1.3600 and more further out. Direction of Trade: →↗ Chart Levels: Support Resistance 1.3342 " 1.3412 1.3245 1.344 1.32 1.3471* 1.3100/1.3090* 1.352 1.3 1.3582* GBPUSD Comment: Retreating from a recent high at 1.5198, just under January's high at 1.5375. Cable should re-group today in order to mount another upside attack next week. A weekly close above 1.5150 should add to bullish pressure, though maybe not convincingly. Strategy: Buy at 1.5015; stop below 1.4800. Add to longs on a sustained break above 1.5200 for 1.5375 short term and then 1.5725/1.5800 Direction of Trade: →↗ Chart Levels: Support Resistance 1.5000 " 1.5055 1.4968/1.4942 1.5115 1.4835 1.5200* 1.47 1.5375* 1.4500* 1.5535 USDJPY Comment: A small 'spike high' yesterday at 99.80 might mean that we hold below here again today and drift down to the Ichimoku 'cloud'. Strategy: Attempt shorts at 99.25; stop above 99.85. Short term target 97.75, maybe 97.15. Direction of Trade: → Chart Levels: Support Resistance 98.94 " 99.42 98.3 99.57 97.94 99.80** 97.7 100 97.15/96.90* 100.74 EURJPY Comment: Conflicting messages as we trade very broadly sideways roughly between 126.00 and 134.00. We feel the latest rally might stall around the 133.00 area but be prepared to be very flexible short term and probably for the whole of this year. Strategy: Attempt small shorts at 133.00; stop above 134.50. Add to shorts on a sustained break below 130.70 for 128.85 and maybe 126.65. Direction of Trade: → Chart Levels: Support Resistance 132.15 " 133.23 130.7 133.58 129.85 134 128.5 134.33/134.50* 126.45* 135.5 Mizuho Corporate Bank Disclaimer The information contained in this paper is based on or derived from information generally available to the public from sources believed to be reliable. No representation or warranty is made or implied that it is accurate or complete. Any opinions expressed in this paper are subject to change without notice. This paper has been prepared solely for information purposes and if so decided, for private circulation and does not constitute any solicitation to buy or sell any instrument, or to engage in any trading strategy.