EUR: Attempt small longs at 1.5700

Wed, Mar 19 2008, 07:18 GMT
by Nicole Elliott

Mizuho Corporate Bank

technical analysis will be away until tuesday 8th april

EUR

Comment: Pulling back from the record high of 1.5905 in what is seen as much-needed consolidation. It is still overbought and bullish momentum is extremely strong.

Strategy: Attempt small longs at 1.5700; stop below 1.5520. Short term target 1.5800, then 1.5900.

EUR/JPY

Comment: Bouncing a lot more strongly than we had thought but appears to have stalled against the Ichimoku ‘cloud’. Watch for more signs of topping today.

Strategy: Attempt shorts at 156.00; stop above 158.00. Short term target 154.00, then 152.50.

GBP

Comment: Trying hard but could do better. Cable is trying to stabilise above 2.0000 and should continue to do so this week before rallying to 2.0500/2.0600.

Strategy: Attempt longs at 2.0095; stop below 1.9940. Add to longs on a sustained break above 2.0275 for 2.0400 then 2.0500/2.0600.

JPY

Comment: Bouncing by a little more than we had thought, through the psychological 100.00, to 100.45. This has corrected the very oversold situation and futures positions remain well below last year’s peak. For this morning look for signs of topping around 100.00.

Strategy: Attempt small shorts at 99.45; stop above 100.55. Short term target 98.00, then 95.77.