Near Term Currency Targets

In choppy trading the dollar is being sold into the end of the European session and new lows for the session are being recorded. Now that cooler heads are prevailing and expectations of a Fed hike are being unwound, the dollar appears poised to return to the lows seen last week.

EUR: Next target is near $1.4070 and then $1.4135, but the risk is for a test on the $1.4335 level seen last week. Support is seen near $1.3950-70. Many momentum traders got squeezed out of long euro positions and have scrambled to re-establish them.

GBP: Sterling remains stellar-- its recovery from a 8.5 cent decline in 4 sessions has been impressive. It has retraced more than 50% of that decline and the next retracement target is $1.6334. Above there, look for $1.6450 and then $1.6660. It remains well supported against the euro as well.

JPY: The dollar ran into a wall of offers--some suspect them to be exporter related--in front of JPY99. The dollar is now testing its 5-day moving average near JPY97.46 and the initial retracement objective near JPY97.19. The near-term risk extends toward JPY96.65 and possibly to JPY96.00.
Near Term Currency Targets Near Term Currency Targets Reviewed by magonomics on June 09, 2009 Rating: 5
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