And as we come to the end of another trading week and the end of a quarter, it is always interesting to take a look at the four primary currency indices of the US dollar the Japanese yen, the single currency and finally the British pound, and here the timeframes are the daily chart.
If we begin with the Japanese yen, this has seen an extended rally for the currency throughout May and June which has delivered strong trends across the yen complex for all pairs with the index rising from 8200 to 8900. However this now appears to be coming to a pause point and possible reversal a fact now also taking shape on the daily charts for several yen pairs.
Moving to the US dollar, whilst this has seen a series of higher highs and higher lows from April through to late May, this trend now appears to be breaking down with strong resistance now in place at 12,360 as the index breaks a platform of potential support in the 12,250 area, and should we see 12,240 taken out in due course, this will signal further downside momentum for the US dollar. Next comes the Euro and here the rebasing throughout April and May is now taking shape as the single currency rallies off these lows to test the 130 region and developing into a series of higher highs and higher lows.
Finally to the British pound which tells its own story, as worries over Brexit and a change of Prime Minister continue to weigh heavily as the bearish sentiment drives the index ever lower and down towards 112. The key price action here was the breach of potential support at 116.50, which failed to hold, and once broken, the trapdoor opened.
By Anna Coulling
Indicators from Quantumtrading
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