EUR/USD retests the 37 YEAR TREND LINE SUPPORT AT 1.0760/20. Longs need stops below 1.0670. Obviously there is nothing more important than this level this week. Longs at 1.0760/20 initially target 1.0820/50. Above here is more positive, targeting 1.0900/20 then 1.0960/70.
USD/CAD sees strong resistance at 1.2650/70. Shorts need stops above 1.2690. A break higher is a medium term buy signal. Very minor support at 1.2610/1.2590 and again at 1.2525/05 today. If we continue lower, look for 1.2480/70. We have another buying opportunity at 1.2440/10. Longs need stops below 1.2370. A break lower is an important medium term sell signal.
USD/JPY beat the14 year trend line resistance at 127.10/50 and rocketed another 200 pips!! The pair has 13 blue bodied daily and 7 weekly candles in a row. So, this is a sell signal, despite severely overbought conditions. Above 129.50 look for 129.90/95 then 130.25/35, perhaps as far as 130.75/85. First support at 128.45/25. Further losses can target 127.80/70. Unlikely, but if we continue lower, look for strong support at 127.10/126.90.
EUR/JPY was higher as expected reaching 139.67 with no sell signal yet as we become overbought. Further gains can target 139.95/99 then 140.40/50 and 140.85/95.
GBP/USD retests last week's low at 1.2990/70 after the bullish engulfing candle so now we just have to see if we get a double bottom buy signal, or if the pair breaks lower for a sell signal. So far the bulls are winning, as we bounce from 1.2977. A break below 1.2955 should be a medium term sell signal. Our longs target 1.3060/70 and 1.3100/10, perhaps as far as first resistance at 1.3150/70.
