• Euro Bottoming Now? • Japanese Yen Thrusting Into 114 • British Pound Decline Extending • Swiss Franc Critical Level • Canadian Dollar Trade Setting Up Nicely • Australian Dollar Choppy at Bottom of Range • New Zealand Dollar .7600 Strong Resistance So Far
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Commentary: We wrte yesterday that “the EURUSD may drop below 1.4330 without first challenging 1.4452 and complete wave C (and larger wave 4) of the A-B-C decline from 1.4967. A potential terminus for the decline is where wave C = wave A at 1.4309. “ The EURUSD is approaching this level now but there is no sign of a bottom forming near current price, indicating that the decline could extend into the 1.4100 area. For more on this, see the Special Report that we published yesterday. Strategy: Flat Visit our recently updated Euro Currency Room for specific resources geared towards this currency.
Commentary: Near term, the USDJPY is either completing a triangle as a 4th wave or a flat as a 4th wave. In the case of the triangle, the USDJPY should rally from here into the 61.8% of 117.93-107.20 at 113.83 with 112.73 remaining intact. In the case of the flat, the USDJPY will dip below 112.73 to test the support line near 112.55/60 before rallying into the mentioned Fibonacci level. Strategy: Flat Visit our recently updated Yen Currency Room for specific resources geared towards this currency.
Commentary: We wrote yesterday that “if an impulsive decline is unfolding from 2.1160, then the decline should accelerate in the next few days in a third of a third wave down. If we see 5 waves down on the daily, then we will get an opportunity sell the wave 2 correction that ensues. Those that wish to begin bearish operations now should look for resistance in the 2.0230 area.” Cable has plummeted below 1.9900 and the next objective is the 161.8% extension at 1.9525.
Strategy: Flat Visit our recently updated British Pound Currency Room for specific resources geared towards this currency. \
Commentary: The USDCHF is closing in on the 100% extension of 1.0886-1.1327-1.1153 at 1.1594. Given the outlook for bottoms to form in the EURUSD and GBPUSD over the next week or so, we expect a top in the USDCHF near 1.1594. This level was former support as well; and could now be resistance. Strategy: Flat
Commentary: The USDCAD is setting up for a big decline. 5 waves down from the top (1.0248) are complete (or close to complete) at .9951. This decline completes either wave 1 or A of one larger degree. A wave 2 corrective rally should end in the 1.0064-1.0135 area (38.2%-61.8% of 1.0248-.9951). Get bearish in that zone, against 1.0248. Strategy: Get bearish in the 1.0064-1.0135 zone, against 1.0248, target TBD Visit our recently updated Canadian Dollar Currency Room for specific resources geared towards this currency.
Commentary: The AUDUSD continues to slide and is likely to continue lower until at least a support shelf which begins with the 200 day SMA at .8517. The next potential support levels are the 61.8% of .7670-.9400 at .8331. We will look for a bottom and reversal near there.
Strategy: Flat
Commentary: Wave c of the flat is underway and price must come under .7435 before we can begin to look for a bottom. Near term, wave i of C looks complete.7507. As such, a corrective setback to the .7671/.7773 zone (38.2% -61.8% of .7937-.7507) would offer a high probability short opportunity. However, wave ii might be complete at price has been unable to push through resistance at .7586. We are showing the 15 minute chart this morning. Strategy: Get bearish in .7671/.7773 zone, against .7937, target below .7435