Major changes for currency trends may be underway, according to David Linton, Chief Executive at Updata.
In his weekly video report, Linton looks at EURUSD, GBPUSD, EURGBP and the US Dollar Index:
EURUSD is through convincingly above the clouds on Ichimoku charts and is now showing strength. Upside targets are 1.1470 and 1.1710.
GBPUSD is also showing strength against the USD on the daily chart, albeit not on the 60 minute chart which suggests a small pullback. Linton says If we close below 1.5770/1.5750 it would signal a short-term downtrend, but the long-term trend is more bullish.
EURGBP is just starting to emerge above the clouds, suggesting the Euro is starting to look more bullish than sterling.
US Dollar Index: Linton points to the series of lower highs and lower lows on the daily chart since mid-March. If the index closes below 93, he thinks a big pullback will be on the cards. For the moment, however, the direction is unresolved and he is bullish for the USD Index above 98 and bearish below 93.
For details, watch Updata’s Technical Analysis for Energy Traders, which includes an analysis of the major energy, currency and stock markets:
European Gas & Power
Coal & Emissions