Eur/Jpy: If the cross is going to stall out, our entry point is ideal, with the level coinciding with some key hourly rising trend-line support off of the 24Aug yearly lows. This in conjunction with the daily average true range having already been exceeded and a severely oversold hourly RSI helps to reaffirm our short-term bullish bias, and we look for a decent corrective bounce over the coming hours. Stop has been placed below the previous hourly higher low at 106.15, as well as the 106 figure to provide some defense from a potential overshoot. POSITION: LONG @106.89 FOR AN OPEN OBJECTIVE; STOP 105.89.
Eur/Chf: While we realize that this cross is closely correlated to Eur/Jpy, we can not ignore what we believe to be a highly attractive buy opportunity below 1.2900. Technical studies continue to warn that the market is highly overextended on a medium-term and longer-term basis, and fresh record lows from here are limited. As such, our strategy continues to be to look for oversold intraday moves where the daily average true range has been exceeded to attempt to establish a counter-trend long. If this trade does trigger, we see a scenario playing out where the market stalls out once again below 1.2900 in favor of the formation of a major double bottom on the daily chart with the neckline by 1.3165. STRATEGY: BUY @1.2880 FOR AN OPEN OBJECTIVE; STOP 1.2780. RECOMMENDATION TO BE REMOVED IF NOT TRIGGERED BY NY CLOSE (5PM ET) ON MONDAY.
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