Our first entry.....:).  We hope the traders and colleagues enjoy our analysis.

The Euro loves this range of 1.58-- to 1.53-- (looks familiar).  We are at the top of that range now with a daily range of 1.5817 to 1.5720.  Our weekly house view is neutral due to the amount of news on Thursday.  ECB rate decision and NFP could send this pair into uncharted territory.  We are waiting patiently for breakout opportunities.

The yen hit major historical resistance at 108.56 on the 16^th.   This area was confirmed when price action moved back down to retest previous resistance turned support of 105.   Now that price has dropped to this previous congestion level we could see a test of 107 again.   If the support level of 105 is taken out, we would not be surprised if 102.74 is achieved.   On the other hand; If 108.56 is removed, the path of least resistance could be a move to 50% fib of 109.89.   There has been a lot of noise with yen crosses lately so trade smart and safe.

The next fighting pair is the Sterling/Dollar cross.   The Sterling has advanced quite nicely since touching the hard support of 1.9410, and has now moved to the 200 day SMA at 1.9990.   If it was going here then it had to touch 2.0000, just to say it did.   The question is, where to next?   There is an argument for both sides.   We can’t rule out 2.0245 (50% fib) as a long target, or a re-test of 1.9410.   The bottom extreme is 9340 which if taken out would create a nice sell-off.   At the moment we do not like trading this pair because both economies are in a weak state.