EUR/USD buyers gave us a best effort push to 1.2676-79 on the approach to our 1.2680- 1.2700 focus level from last night. The dollar was certainly trading on the offered side, but EUR/JPY's impressive performance above 150.00 leads me to believe it wasn't all dollar weakness that drove the euro buying; there was some help from the cross. DXC 86.00 level is likely to draw buying interest from those who remember this month's NFP report, which caught traders on the wrong side of the 86.00 break higher. USD/CHF held the obvious 1.2550 technical support level, as USDJPY is doing the same dance above trendline support at 118.50.

118.50 not only finds obvious trendline support, but also price relationships between neighboring down legs based on .618 that further substantiates 118.50 support, for the short term at least. Nimble traders could be 118.50-60 buyers will stops below 118.40 targeting a move back to 119.00. In order for this trade to work, we need DXC above 86.00, EUR/JPY above 150.00, and EUR/USD below 1.2700.

Todd Gordon is a Technical Currency Strategist and Fund Trader with GAIN Capital Group.

Disclaimer
The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.