EUR/USD
EUR/USD" title="EUR/USD" width="911" height="662">EUR/USD:
1.3341
Short-Term Trend: Uptrend
Outlook: Well, I was bullish for the daily chart on EUR/USD but expected a pullback toward 1.2870 prior to another rise. But last week EUR found strong support right above the 1.2995 Fibonacci support and rallied strongly at the end of the week. Thus, we have strong evidence that the larger-degree uptrend on the daily chart has resumed. If that's the case, a rally toward 1.3520 and then to 1.3720 is expected.
On the downside, a move back below 1.3130 will negate this bullish oultook but only below 1.3000 will turn the daily chart bearish.
Strategy: Longs favored at 1.3320 against 1.3120. Target=1.3720.
GBP/USD
GBP/USD" title="GBP/USD" width="911" height="662">
GBP/USD: 1.6127
Short-Term Trend: Sideways
Outlook: GBP was initially under pressure but found support near 1.6000 level and then recoved at the end of the week. The larger-degree outlook however has not changed. The daily chart remains in a sideways trend and as long as the prices stay below 1.6300/50 resistance area, we are looking for a trend reversal. A move below 1.5820 is needed to confirm this view.
On the upside, if we see a strong move above 1.6350, the odds will favor further rally toward 1.6600...
Strategy: Holding short from 1.6170 is favored. Stop=1.6350.
USD/JPY
USD/JPY" title="USD/JPY" width="911" height="662">
USD/JPY: 89.17
Short-Term Trend: Uptrend
Outlook: USD has continued its strong move hihger vs. JPY. Initially last week we saw a small pullback but it held above the indicated 86.70 chart support. Then the market broke out again to new highs. Now, the upmove is overextended and quite overbought. So we may see a pullback soon back toward 87.00/86.80 area. But as long as the prices hold above the rising 21-day moving average, the bulls are in full control and we expect gains toward 92.10.
From a trading perspective, the most logical stop is still at 86.70, but you may decide to raise it further to protect the huge gains that have been obtained for the past several weeks.
Strategy: Holding long from 81.30 is favored. Stop=87.80