EUR/CHF (+388)

with the Euro in the downfall against many of the currencies, it is entering oversold levels. On the monthly chart, it is about 1500 pips bellow it's lowest levels since 1995. Since there are no significant shifts between two economies, but credit rating downgrade, we think that sentiment will shift just like it did on previous cases, and profit taking is going to help the rebound of the currency. On the previous monthly candles, it is evident that there is strong rebound on each bearish candle. We very well might add on further gains of the CHF in this year
Besides candles we can see strong divergence of the RSI indicator and price, what indicates move higher.
Stops are placed at 1.2340 and profit targets are set at 1.2840, and above.

EUR/CAD (+162)

euro is expected to make moves lower as the worries about stability in europe continue to make headlines. Uncertainty about Ireland need/not need help, will drag the Euro lower, and CAD is expected to continue with progress. Without major news for this week, accept for Tuesday German ZEW Econ. sentiment, headlines, and equity moves will continue to affect the pair on the downside. On technical side 100sma is crossing over 200 sma what is bearish signal, and RSI is marking lower highs. Stop is placed at 1.3915, and target is placed at 1.3680 and lower.

USD/JPY (-48)

moves in USD are still dictating the trades as we approach the G 20 meeting, and risk appetite was on a decline on the back of declining prices of oil, and weaker gold. Pair was showing stabilization bellow 82.00 level what is telling us that the market participants are not ready to start taking profits because they expect further decline in USD and more JPY gains. For the ones that believe this it is an excellent opportunity to start a new short with stops at 82.20, and target at 80.70, and then 79.80.

GBP/JPY -56

with the another negative news for GBP (CBI realized sales 36 vs. 49 previous), we can assume further decline of GBP, despite positive prelimianry GDP suprise yesterday (0.8% vs. 1.2 previous). BoJ press conference did not do much for the JPY so we can assume again that JPY strength is in days to come, at least towards US elections & FED meeting. Price actions seems trapped between two simple moving averages (50 & 100), so we will be careful on bounce of those limits. Slow Stochastic are in line with our projections. Stops are placed above most recent high 128.40, and target is at 127.70.

EUR/JPY (-10)

move lower on the chart before euro open, is lead of the JPY gains, and not euro weakness. Euro is holding it's ground against other currencies, and besides USD is showing some kind of weakness. Equity markets are about leveled, and indication for US open are on/about zero level. Data from US has mixed expectations, and later on in the day, BoJ has a monitory policy statement where they could purchase another trillion JPY of corporate bonds to reduce strength of JPY. We don't believe market is going to drive JPY any stronger besides these levels, and we could see some decent gains on this pair, especially if equity markets show gains. Trend line support is obvious, and we are going to place the stop bellow recent swing low 112.30, and target at 113.50, and then 114.50. Pay attention on reaction to 200 sma at 113.11

AUD/USD (-48)

with the positive news for the U.S. it is expected that market will jump on it with more buying. Since everybody is buying on the account that FED will pump more money in the system, risk is suppose to increase, and the purchase of AUD (and probably NZD & CAD too).There is clear support with 100 sma, and stops are placed at 0.9880, and target is 1.0020

EUR/USD -18

oversold and overbought levels of bought currencies, EUR and USD. It is said that pairs reverse, when everybody is on one side of the trade, and we think that is happening now with eur/usd. Stops are 1.4135, and target 1.4005