EUR/USD - The decline from 132.26 down to 131.03 seems impulsive (five wave decline), that means we should be looking for a three wave correction towards the 131.79 - 131.97 area from where the next impulsive decline should commerce and take out support at 131.03 for a decline towards support at 129.93 on the way to strong long term support near 126.25.
Only an unexpected break above 132.26 will delay for a move higher towards 132.85 before down.
If we saw a five wave decline yesterday the 131.79 - 131.97 area should represent a low risk selling-area with a 132.35 stop
USD/JPY - Declined a bit more than expected, but it hasn't changed the overall picture of the decline from 84.17 down to 80.83 being a wave ii correction. A break above 81.18 will confirm that the correction from 84.17 is over for a new rally towards 83.26 on the way to 85.65 longer term.
A break below 80.83 will delay the upside pressure for a continuation down to 80.65 before the underlying new uptrend is ready to resume.
If you bought USD ag. JPY yesterday in the 81.15 - 81.20 area keep protective stops at 80.25. If you haven't bought yet you could buy here in the 80.65 - 80.87 area with the same stop or more conservatively wait for a break above 81.18 before buying USD.
GBP/USD - We could have seen wave E of the big triangle end at 161.48 just below the ideal target at 161.65, but as long as support at 160.35 protects the downside I will be looking for the move towards 161.65 or even slightly above in a failure break before the downside pressure really takes over.
The aggressive trader will short near 161.65 with a 163.25 stop, while the more conservative trader will wait for a break below 160.35 with a stop just above the top set before the break-down.
AUD/USD - Seems to be leading towards the downside again. Yesterday we broke below support at 103.00and all we need now to confirm that we have begun the next serious decline is a break below 102.20, which will open up the downside for a decline towards support in the 98.55 - 98.90 area.
Only an unexpected break above 103.85 will delay the downside pressure.
USD/CAD - Here I'm still looking for one last decline below 98.38 to ideally the 97.20 - 97.55 area from where the next upside pressure should begin. Be aware that all we need is a break below 98.38 to fulfil the requirements for the decline from 105.23 (five wave decline in wave C) and setting the stages for the next rally above 100.50.
EUR/JPY - Here too the wave ii correction became a little deeper than expected, but I expect we have seen wave ii end at 106.29 and soon will see a break above 106.83 confirming a minor double bottom and the on-set of wave iii higher towards 108.80 and 109.80 on the way above 111.47 towards long term target near 118.85.
If you haven't already bought EUR ag. JPY a use a break above 106.83 with a 105.80 stop.
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