Well, what does it look like this week? I’ll tell you what I think.
Majors all the way. As opposed to the Comms.
OK, Mike, no more trying to find bottoms, tops…(I’ve realized this week that’s what I must be doing)
What’s the trend? It is the Majors. Let’s break 'em down.
[B]–CAD–[/B] They have fallen apart. Thanks to Mr. Oil. I just don’t think they can recover, this year anyway. I think they are on the slippery slope till next year. I kind of think the year’s end play is playing out. Also, check out the charts here. This is the weekly charts, from the start of the year. They are at extremes against everyone, except against the NZD.
[B]–AUD–[/B] You know, I had hopes for them. (That’s my problem) But, nope. They are sliding down quickly, and wanting to join little brother in the dumps. And on Friday, it was just ugly for them.
[B]–NZD–[/B] Well, one out of 3 isn’t bad. They are the only Comm to have it’s head still above water.
But look at Friday’s results. Only 3 currencies were in the negative…ALL COMMS!!
[B]–CHF–[/B] They are dominating the market. You can’t deny the money is going to them. For whatever the reasons are, it’s true. Up to this point. I think the trend will continue.
[B]–EUR–[/B] Well, they are up there also, following big brother. It seems like they had a turn around. I guess the money got tired of selling them for so long, and now onto buying them. I think ever since their meeting…you know, more tools they used. Plus I think this is a precursor to what the USD might do. The rise before the fall.
[B]–JPY–[/B] Been very strong. And I think they are on the other end of the USD also. See, they tend to follow the USD. But, this past week there has been selling of the USD, but with it, buying of the JPY.
And of course we must mention there has been a running to the safe havens. Which means Majors over Comms.
[B]–GBP–[/B] I think they have just been floating. Good days, bad days, but nothing to write home about. Surely not being in the spot light, good or bad.
[B]–USD–[/B] Last but not least the US Dollar. We all know what’s up and coming this week. This event has been the most sought after event this entire year. So, what happened this past week? Surely not a lot of buying. They have dropped, but look at the last 2 days. I think they are winding up for a good boost. One thing that stands out very much, for me, is what happened to the USD/CAD. Do you remember I noted that…either up or down. Well, up it went. (I know, Mr. Obvious here)
But, when I look at that pair, in the light of the M vs C , it is telling to me. See, those 2 are brothers. So, when there is a pretty good divergence (big candle) that tells me there’s gonna be some movement (tilt).
And Majors it is.
—Majors are on a roll. (Just look at Friday’s results) They are trending high against the Comms. And given the big catalyst coming our way, I don’t think the Comms have it in them to take out Goliath.
And who’s the stronger? Well, it pretty much could be all of them. Safe havens…USD…EUR (QE money).
Maybe even the Pound. (can’t rule them out)
P.S… You know, I’m working on these relationships. And I’m coming up with some good stuff.
Let me leave you with this.
Each currency pair means something!
And I’m trying to document, group, and fashion these in a way in which will prove some direction.
Kind of like how father Peter did with the Intermarket Analysis.
This is gonna be called ‘InterCurrency’ Analysis.