I do these three currency pairs because they represent a cross section of the market as a whole – all matching up to possible opportunities on Wild Card, 6 Aces and Royal Flushes (Trending and Elliott Wave) and they represent correlating other currencies.
Example: due to it’s very close correlation the EURUSD will show you what the USDCHF will possibly do going the other way!
This way whatever trader you are you have an idea of what the possibilities might be.
REMEMBER: THIS IS BIG PICTURE ONLY – NOT INTRADAY! Please NOTE!!!! This is an opinion only!
What I see…the currencies MIGHT do next week? NOTE: IF YOU ARE UNSURE – STAY ON THE SIDELINES!’
SPECIAL NOTE:
The USDCAD has been rallying over today (and this week) on the back of lower oil, lower stocks and a general flight into the dollar and out of the riskier currency pairs. The price is trading near the high for the week and looks toward a longer term target of 1.0785 – the 38.2% retracement of the move down from from July 8th high to the low reached in October.
CLICK ON IMAGES TO ENLARGE
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EURUSD
WHAT I SEE: The EURUSD has continued the large chop to the .500 fibo 5 times. Does not seem to be any sellers below so it keeps bouncing back up. A break of the fibo and the trendline would be significant – if so look for 1.4734. If not? Look to continue the pattern.
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USDJPY
WHAT I SEE: – The USDJPY continued down to the 88.64 target. We have a very evident descending wedge which is bearish. A break of the wedge up should produce a move to the 90.78 area and a break of the wedge should move to the S5 at 86.85.
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EURJPY – ALWAYS MY PREFERRED TRADE!!!!!
WHAT I SEE: – The EJ is stuck in a descending wedge. Until it breaks one way or the other, traders can trade bounces off the extremes. Clues to the breakout will probably come from the EURUSD. South look for a move to 130.44 (S5) and north back to the 134.00-134.50 area.
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EXTREME CAUTION IS URGED – TRADE WITH STOPS!!!!!
BTW – if you want to save the pics, right click and hit “save as”.
IMPORTANT NOTICE: These comments are for information purposes only. The information contained on this document does not constitute a solicitation to buy or sell by ProAct Traders, LLC., and/or its affiliates, and is not to be available to individuals in a jurisdiction where such availability would be contrary to local regulation or law. Opinions, market data, and recommendations are subject to change at any time. Forex trading involves substantial risk of loss and is not suitable for all investors. This is an opinion ONLY – and not a trade call, but a study that may lead you to a trade. I do not know whether this will transpire or not so use your own judgment.
