Euro eased back to only 1.2775 on Friday before rising again firmly through 1.2860.Euro should now challenge the 1.2980 high, but with short-term cycles entering the window to rollover, it is not clear whether Euro will break through that resistance on this occasion.Initially today Euro should drop back to 1.2865 to retest its breakpoint before continuing higher.A subsequent slow rise will suggest that 1.2980 will hold; a fast rise will maintain the option for a break.A break of 1.2980 will confirm that the long-term rally is resuming and over time Euro will test and break its 2004 high of 1.3670.However, a drop through 1.2775 will be a warning of weakness and break of 1.2715 will confirm it.
Sterling rose strongly on Friday and exceeded the previous high of 1.9025 but stopped at channel resistances around 1.9130.Expect a pullback to 1.9030 then another test of channel resistance before a retracement back to 1.8915 starts.
Dollar/Swiss could only manage a rise to 1.2345 on Friday before extending its decline.A pullback from 1.2190 should end at 1.2260 and the decline should test 1.2180
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