Jamie's Pick: 02/10/11
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EURUSD - As mentioned yesterday – “once this small upward correction is complete, the EURUSD is expected to collapse in a powerful 3rd wave decline. It should be worth the wait.” The corrective channel break suggests that the sharp 3rd wave decline is underway. A drop below 13507 would shift focus to the 100% extension at 13429 and the 50 day average at 13361. 13610 and 13650 serve as short term resistance.
AUDUSD - The AUDUSD has dropped to test former support at 10021. A drop below 9962 (February low) would be significant in that it would confirm an intra month reversal. The 20 and 50 day averages are at 10014 and 9992 so this level could provide some support. 10060 is near term resistance. Keep in mind that the year to date high remains the January 3rd high (first trading day of the year). This is the most likely date of the year to produce a high or low for the entire year.
USDJPY - “Directional pivots are 8321 and 8110.” The move above 8321 and strong trendline break (not to mention breaks above the 20 and 50 day averages) makes it likely that the ultimate break will be to the upside (above 8450). 8368 is the next level of interest to the upside. From an Elliott perspective, it is possible that the base from the November low is a series of 1st and 2nd waves.
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