[B]• Euro Ready to Skyrocket Higher?
• Japanese Yen Trend May Have Turned
• British Pound Plummets
• Swiss Franc Still in Trend
• Canadian Dollar Targets .9800
• Australian Dollar Path to the Downside
• New Zealand Same as Aussie[/B]
Commentary: The last few days we have focused on the idea that wave 5 is in progress towards 1.5000. Given that waves 1 and 2 (roman numeral) of 5 could be complete, the bullish count is favored. However, we are proposing an alternate. A larger A-B-C could be unfolding from 1.4751. The rally from 1.4520-1.4724 might be wave B of that correction; meaning that wave C would be underway now.
Strategy: Flat
Commentary: We wrote yesterday that “the USDJPY is very close to the 38.2% and may have reversed at 111.55. A new high (above 111.55) would make the rally from 109.12 in 5 waves and suggest that a larger rebound is underway. Under that scenario, the best strategy would be to buy dips.” It looks like the rally from 109.12-111.76 is in 5 waves. The decline to 110.36 would be a small 2nd wave under this interpretation. Price could erode a bit more to the 61.8% at 110.14 but a bullish stance is warranted against 109.12
Strategy:Flat
Commentary: We could not have been more wrong yesterday to advocate a bullish stance against 2.0522. Cable has plummeted, and held just above 2.0400. The evidence at this point favors additional losses. The decline from 2.1160-2.0522 is either wave 1 in a 5 wave bearish cycle or wave A in an A-B-C correction. The rally to 2.0844 is wave 2 or B and the decline from 2.0844 is wave 3 or C. The decline from 2.0844 would equal the 2.1160-2.0522 decline at 2.0209, which is the intial bearish objective.
Strategy: Stopped out of Bull position…taking a break from GBPUSD but a bearish position is warranted against 2.0617, target 1 is at 2.0209
Commentary: There is not much of a change from yesterday when we wrote yesterday that “the internal structure of the decline from 1.1299 suggests that there is more to the downside (1.1100?). Still, this decline should bring an end to a larger decline and give way to a sharp rally.” The only change is that there could be a push through 1.1299 to complete a small correction but lower prices are expected.
Strategy: Flat
Commentary: We wrote yesterday that “the rally does not look complete. A 5th wave within the 5 wave advance from .9236 is required before we can think about getting bearish. Wave 4 may have ended at .9510 so we favor price rallying through .9724 prior to coming under .9510.” The USDCAD just hit our target at .9750. The next level of resistance is at the confluence of the 161.8% extension of .9055-.9404/.9236 at .9799 and the 10/22 high at .9825. At this point, it looks like the USDCAD will extend above .9800. A pullback is expected soon though. The form of that pullback will alert us as to whether or not the USDCAD has put in a multi-month bottom or is headed lower.
Strategy: Profit Target Hit at .9750
Commentary: We wrote yesterday that “the rally from .8753 is corrective (A-B-C) to this point. However, that can change if price exceeds .9068.” Price remained below .9068 and the Aussie has fallen. Unless the pair is in a larger correction (complex W-X-Y), price should continue lower and come under .8753. Maintain a bearish stance against .9015.
Strategy: Flat
Commentary: The Kiwi is in the exact same position as the AUDUSD. The rally from .7435-.7675 was in 3 waves, which suggests that the path is to the downside. Coming under .7527 instills confidence in the downside. Maintain a bearish bias against .7662.
Strategy: Flat
