- EUR/USD has moved steadily higher since finding support early last week ahead of the 15th square root relationship of the year’s high in the 1.2250 area
- A daily close over the 2nd square root relationship of the year’s low at 1.2470 will turn us positive on the exchange rate
- Weakness below 1.2430 is needed to reinstill downside momentum in the rate
- A very minor turn window is eyed early next week
EUR/USD Strategy: Square. Will look to buy on weakness if spot close over 1.2470.
| Instrument | Support 2 | Support 1 | Spot | Resistance 1 | Resistance 2 |
|---|---|---|---|---|---|
| EUR/USD | 1.2430 | 1.2470 | 1.2250 | 1.2585 | 1.2605 |
- USD/JPY broke below the 4th square root relationship of the year’s high earlier this morning and aggressive weakness has followed
- Our near-term trend bias is lower USD/JPY while below 117.40
- Important support is eyed at 115.45 and 115.00 and weakness below these level is needed to prompt a much more serious unwind
- A minor turn window is seen around the end of the week
- A close above 117.40 would turn us positive on the exchange rate
USD/JPY Strategy: Like the short side while under 117.40
| Instrument | Support 2 | Support 1 | Spot | Resistance 1 | Resistance 2 |
|---|---|---|---|---|---|
| USD/JPY | 115.00 | 115.45 | 116.20 | 116.80 | 117.40 |
