[B]• Euro In For a Correction
• Japanese Yen Impulse Rally
• British Pound To Still See 1.9500
• Swiss Franc Looks Strong
• Canadian Dollar Will Trade In a Choppy Manner
• Australian Dollar Headed Towards 1.0000 In Next Several Months
• New Zealand Dollar Diverges From Aussie[/B]
[B]SEE A DECRIPTION AT THE BOTTOM OF THIS REPORT FOR THE INDICATORS IN THE TABLE
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[B]Commentary[/B]: Larger wave 4 is complete at 1.4310 and wave 1 of the next larger degree is close to complete at 1.4750. Wave 2 is likely to bring price back to the 1.4600 area (former 4th is at 1.4592). A deeper correction is possible since this decline is a second wave (and second waves are usually deep). The next leg higher will be a third wave and is expected to challenge 1.5200/1.5300 (but not before a dip to 1.4600). Be sure to check out the Elliott Wave forum for intraday updates to the count.
[B]Strategy[/B]: Exit bullish position
Visit our recently updated Euro Currency Room for specific resources geared towards this currency.
[B]Commentary[/B]: We wrote on Thursday that “the USDJPY hit 114.65 today and has reversed lower in what could be the start of the next bearish leg in a 5 wave bear sequence that began at 117.93. A resistance line drawn off of the June and October highs supports a bearish bias.” The bearish bias remains intact at this point. One possibility is that a larger more complex correction is unfolding and that this decline is just wave X. Potential support is at 111.31 and 110.09 (100% and 161.8% extensions of 114.65-112.67/113.29).
[B]Strategy[/B]: Bearish, move risk to 113.29 (from 114.65), target 110.20
Visit our recently updated Yen Currency Room for specific resources geared towards this currency.
[B]Commentary[/B]: Expect a top and reversal in the 2.0069-2.0166 area. This area is the 38.2%-50% level of 2.0576-1.9755. The rally from 1.9755 should complete wave iv of C within the A-B-C correction from 2.1160. We will be looking for a significant bottom to form in the 1.9500 area.
[B]Strategy[/B]: Bearish, against 2.0195, target 1.9530
Visit our recently updatedBritish Pound Currency Room for specific resources geared towards this currency.
[B]Commentary[/B]: The USDCHF is in the exact same position as the EURUSD (but as the inverse). Wave 1 down is close to complete at 1.1226. Although a test of 1.1200 is possible, the next larger move will be in a wave 2 correction towards the 1.1400 area (much like the next EURUSD move is likely back to the 1.4600 area). This bounce will present the next bearish opportunity.
[B]Strategy[/B]: Exit bearish position
[B]Commentary[/B]: Near term, expect a bounce in small wave iv of A towards the 38.2% of 1.0140-.9746 at .9902. The USDCAD should roll over near this level and drop below .9755 in order to complete larger wave A from 1.0248. A larger wave B bounce is then expected. In summary, the USDCAD will likely trade in a choppy manner for the next several weeks.
[B]Strategy[/B]: Flat
Visit our recently updated Canadian Dollar Currency Room for specific resources geared towards this currency.
[B]Commentary[/B]: The correction from .9400 is complete and wave i of larger 5 is close to complete at .8825. We expect the next advance to exceed .9400 and possibly test 1.0000 in order to compete a large A-B-C advance of Cycle degree that began in 2001.
[B]Strategy[/B]: Bullish against .8549, target above .9400
[B]Commentary[/B]: We wrote last week that “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. “ The rally ended today at .7791 and the pair has come off nearly 100 pips. The bearish bias remain intact.
[B]Strategy[/B]: Bearish, against .7937, target below .7435
JTREND is a 4 week rolling pivot. When price is above the rolling pivot, the trend is considered bullish. When price is below the rolling pivot, the trend is considered bearish.
DAILY RSI uses 13 day RSI in order to gauge strength of trend. The trend is considered Bullish if the indicator registers a reading above 60. The trend is considered Bearish if the indicator registers a reading below 40. If the reading is between 40 and 60, then the reading is Flat.
DAILY STOCHS uses 13 day SLOW STOCHASTICS in order to gauge strength of trend. The trend is considered Bullish if the indicator registers a reading above 70. The trend is considered Bearish if the indicator registers a reading below 30. If the reading is between 30 and 70, then the reading is Flat.
200 day ?: Slope of the 200 day SMA