FX Technical Analysis

Daily Forex Technicals | Written by Mizuho Corporate Bank | Jun 29 09 06:25 GMT |

EURUSD Comment: Still consolidating under the increasingly important 1.4200 level but giving up very little room. Bullish momentum should increase slightly if we can hold above 1.3900 this week. Only a weekly close above 1.4200 will really get things going and another big round of short-covering. Strategy: Attempt longs at 1.4005; stop below 1.3800. Short term target 1.4100, then 1.4200 Direction of Trade: →↗ Chart Levels: Support Resistance 1.4000 " 1.4078 1.3972 1.4119 1.39 1.4139 1.3872 1.4178 1.3800* 1.423 GBPUSD Comment: Consolidating in a 'triangle/pennant' formation at the lower edge of a large Ichimoku 'cloud'. If not this week then some time in July we favour a break higher. A weekly close above 1.6600 is needed to take bullish momentum back up to the very strong levels of early June. Strategy: Attempt small longs at 1.6450, adding to 1.6200; stop below 1.6080. First target 1.6500, then 1.6600 Direction of Trade: →↗ Chart Levels: Support Resistance 1.6368 " 1.6524 1.6231 1.6605 1.6209 1.6622 1.6187 1.6664/1.6675** 1.612 1.695 USDJPY Comment: The potential 'head-and-shoulders' within which prices have been working since March is still there as prices consolidate below the lower edge of the relatively large Ichimoku 'cloud' and above the 'neckline' and 26-week moving average. Maybe this week, certainly some time in July, we favour a test of the pivotal 94.00 area (and an eventual break below here). Strategy: Sell at 95.45, adding to 96.00; stop well above 96.65. First target 95.00/94.88 then 94.00. Direction of Trade: →↘ Chart Levels: Support Resistance 95.16 " 95.59 95 96.05 94.88 96.58* 94.28 97.27* 94.00* 97.65 EURJPY Comment: Stuck between a rock and a hard place as we hold above trendline support, and at the lower edge of a massive Ichimoku 'cloud'. Expect a test of its lower edge this week. Strategy: Attempt shorts at 133.40, adding to 134.95; stop above 135.50. Short term target 133.00, then 132.00. Direction of Trade: → Chart Levels: Support Resistance 133.42 " 134.11 133 135 132.35 135.38/135.50* 131.8 136 131.41* 137.35 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.