Mizuho Corporate Bank

EUR
Comment: Little to add as we continue consolidating below the all-time high at 1.3853 and above 1.3600. August’s pullback is the same size as the late July one, so we might be forming an A, B, C-type correction. The Euro is slightly oversold.

Strategy: Attempt small longs at 1.3615; stop below 1.3590. Cover around 1.3700/1.3725.

EUR/JPY
Comment: Unable to bounce from the 160.00 area (which has been a big surprise for us). Possibly it might do a bit better today. The Euro is slightly oversold against the yen.

Strategy: Attempt small longs at 160.60; stop below 159.75. Cover longs ahead of 164.00.

GBP
Comment: Frayed nerves as Cable trades at the lowest level since the 6th of July. We expect an interim base to form somewhere between here and 2.0000.

Strategy: Possibly attempt small longs at 2.0100; stop well below 2.0000. Cover longs at 2.0400.

JPY
Comment: Trading surprisingly ‘heavily’ despite the large ‘spike lows’ against the 117.20 and potential ‘double bottom’. We still feel prices will hold above here this week, possibly squeezing back up to 119.84.

Strategy: Attempt small longs at 117.90; stop/reverse below 117.15 for 117.00 and then 116.50. Cover longs around 119.00.