EUR/USD:
EUR/USD: " title="EUR/USD: " width="715" height="518">
EUR/USD:
1.3122
Short-Term Trend: weak downtrend
Outlook:
With prices firmly below the declining 200-day moving average and below the still declining 100-day moving average, the Short-Term trend is considered to be on the downside. Therefore, from a trend-following perspective, lower prices are expected in the coming week or so. On the other hand, our wave count suggests higher prices twd 1.3720 before a decline back twd the 1.2670 level. So, there is a conflict between the wave count and the trend-following part of our methodology. As said many times before, under such conditions the best approach is to be more neutral and cautious.
Strategy: Stand aside.
GBP/USD:
GBP/USD:" title="GBP/USD:" width="715" height="518">GBP/USD:
1.5672
Short-Term Trend: sideways
Outlook:
Remember a week ago I said that GBP might have fooled us with the move abv 1.5945 level. And last week the British pound traded under pressure and closed at the lows of the week. The overall outlook remains neutral though and it is unclear at this moment if wave (D) has ended or not. If wave (D) is still under way, then the market will break below the 1.5640 minor support and will head lower to re-test the 1.5260 level. Considering the current market conditions this is the most likely outcome. The more bullish view suggests that the market is already in wave (E) higher twd 1.6380. This view will be re-inforced if the market holds abv 1.5640 and then moves abv 1.5945....
Strategy: Stand aside.
USD/JPY:
USD/JPY:" title="USD/JPY:" width="715" height="518">USD/JPY:
82.44
Short-Term Trend: uptrend
Outlook:
Well, this market is moving as expected. The daily uptrend remains strong and I still expect to see the 83.80 level. The latest price development is actually more bullish and it becomes more likely that USD will manage to penetrate the 83.80 level and head toward the next important level at 87.36. The evidence that a Long-Term low is already in place is increasing with every week.
On the downside, below 80.55 negates, risks deeper pullback twd 78.80 before the bulls re-group for another move higher...
Strategy: Holding long from 79.70 is favored. Stop= 80.50. Target=87.00