EURAUD
EURCAD
EURNZD
Commentary – We wrote last week that “we expect one more low to register (below 1.5631) before a bottom and reversal.” The EURAUD dell to 1.5491 yesterday (Nov 1) and the turn is underway now. We expect that rally to target at least 1.6222 but the bottom in place may be a major one. The chart above is of the monthly chart and price is bouncing from a trendline that dates to 1989.
Strategy – Bullish, against 1.5491, target TBD
Commentary –Similar to the EURAUD, the EURCAD is testing a long trendline (from 1985 in this case). The pair could be forming a significant bottom. We advocate a long term bullish stance against 1.3493. The rally from the October 2000 low to the February 2004 high is in 5 waves and the decline into the March 2006 low is in 3 waves. The up-down sequence since then may be waves 1 and 2 in the next bull cycle.
Strategy – Long term - bullish against 1.3493, target much higher.
Commentary – We wrote last week that “an expanded flat may be unfolding from 1.9161 and that the bias is bullish as long as price is above 1.8208. The bias is bullish as long as price is above 1.8709. A rally through 1.9423 instills confidence in the bullish bias. This could be the start of a long term bull towards 2.0000 and higher.
Strategy – Remain Bullish, against 1.8208, target 2.0170