Euro Commodity Crosses Tracing Out Corrections


[B]Commentary -[/B] A much needed correction is unfolding from the 6/15 low (1.4136). If a simple a-b-c correction is unfolding, then wave c (beginning at 1.4245) would equal wave a (1.4136-1.4420) at 1.4528. The previous 4th wave is at 1.4630. Similar to the USDCAD, this pullback is a 4th wave and we are looking for a new low to be registered (below 1.4140) before a larger upward correction.
[B]Strategy -[/B] None

[B]Commentary -[/B] A correction is still unfolding in the EURAUD as well. We view this as a 4th wave in a 5 wave decline that began at 1.6594. Look for price to work higher in the next few days. A spike through 1.5955 would complete the flat correction that is unfolding from 1.5775. Similar to the EURCAD, we expect another low, in a 5th wave. The 1.6007/75 congestion area should provide solid resistance.
[B]Strategy -[/B] Remain bearish, against 1.6212, targeting 1.5747 and 1.5229. Adding to position on a pullback towards 1.6007/75

[B]Commentary -[/B] The EURNZD pattern is not very clear but given the fact that the AUD and the NZD are correlated, we are expecting strength next week towards the range high at 1.7839. A short term resistance line, drawn off of the March and May highs, is at 1.8255 today and decreases about 15 pips per day. Watch this line in order to align with the bearish trend.
[B]Strategy -[/B] Remaining bearish, against 1.8307, targeting 1.7211 and bottom of channel, add to position/align with downtrend at 1.8000