This is what I see in the Forex starting the week of June 28th – an OPINION ONLY:
www.proacttraders.com
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: …
China repeated its desire for a Super Sovereign Currency and this led to heavy selling in the dollar. They said that they thought the IMF should manage parts of the members foreign exchange reserves. China is the largest holder of US treasuries. In the most recent data their holdings totaled $763.5 billion.
This call from China is not new and has helped contribute to the fall in the dollar over the last few months. China in their call, would specifically like the IMF to issue more blended rate bonds called SDR (or Special Drawing Rights) so they could invest in them in lieu of their US bond holdings (an SDR is a blended rate bond consisting of part EUR, part CHF and part Yen). The action would lessen the demand for US bonds and could lead to higher interest rates here in the US. With the dollar falling, this should also lead to higher commodity prices. Against the EURUSD the currency rose off the news. Courtesy of Greg Michalowski FXDD Chief Strategist
CLICK ON IMAGES TO ENLARGE
——————————————————————————–
EURUSD
WHAT I SEE: – The 240 and day chart show a pennant in an up move – this is also sideways consolidation although in a nice big range. The last move topped out at the R5 as expected. Lots of new coming out by Tuesday so this should get resolved by then. If it does not keep the consolidation going look for a break of the pennant and an initial thrust to 1.4274 area, then on to 1.4359. On the flip side, USD could readt to the swissie interventions and tumble.
——————————————————————————–
USDJPY
WHAT I SEE: – We are staying in this little down channel and currently testing support again at 95.14. The market could consolidate waiting for more info by Tuesday or it could finally break and go. Nice big target at the 92.81 area with a stop at the armpit at 94.33 area. Wait for it to prove itself!!!!
——————————————————————————–
EURJPY – ALWAYS MY PREFERRED TRADE!!!!!
Stuck in a sideways range as the cross is figuring it out. A break North ( bias is to the north) would give an initial thrust to 135.25 area and a break here should go to the 137.00.
Conversely a move south should stall at 131.45 area
——————————————————————————–
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.
