EUR/USD
: 1.2833
Short-Term Trend: Weak Uptrend
Outlook: Well, EUR is still above the 1.2800 level but the previous bullish wave count is now less likely. That's why I adopted a new wave count shown on the chart above. If this structure is indeed unfolding, it is bearish. A solid break below 1.2800 will strengthen this view and should bring weakness toward 1.2345 eventually.
On the upside, only a move above 1.3195 will revive the previous bullish outlook.
With this in mind, the very aggressive players may trade from the short side for 1.2345 against 1.3025.
Strategy: Stand aside.
GBP/USD
GBP/USD: 1.6021
Short-Term Trend: Weak uptrend
Outlook: The daily chart remains a mess here and it is impossible to tell if wave C has ended or not. The decline from the September top is quite choppy, yet, all rally attemps are corrective in nature. Unfortuantely there is no clear level on the downside that will tell us with confidence that wave C has ended.
Only a decline below 1.5770 will indicate that wave C is complete, but that level is too far below the current market.
On the upside, the maximum potential that I see now is for a move toward 1.6380...
Strategy: Stand aside.
USD/JPY
USD/JPY: 80.42
Short-Term Trend: Uptrend
Outlook: The bullish strategy that we adopted a couple of weaks ago is doing well as USD has now come close to the key 80.60 level. In fact, this level was marginally broken on Friday when the market printed a high at 80.67. But we still want to see a more meaningful move above 80.60. Then we will favor a rally toward 83.80.
On the downside, a decline back below 79.25 will negate the afore-said bullish view.
Strategy: Holding long from 79.25 is favored. Stop=79.25