This ten-day trend led Knudsen to conclude that sterling’s strength couldn’t continue. He pointed out that apart from the recent dip, every other decline in sterling has been bought by investors.
“The break of this trend shows you that people are not buying Cable (sterling) anymore. And I think we’ll be heading down towards April’s low,” he said.
A similar trend can be seen in dollar/yen , according to Knudsen.
“The reason why we’re more bullish this week on dollar/yen is that since March’s high, there has been a clear trend of investors selling the bounces in dollar/yen,” he said. “But going into the end of last week, what we noticed is that momentum was actually slowing.”
Knudsen has an upward target of 81.39 for dollar/yen and said that the currency cross could move higher to 82 over the next couple of weeks.Page 2 of 2 | Prev Page