REMEMBER: THIS IS BIG PICTURE ONLY – NOT INTRADAY! Please NOTE!!!! This is an opinion only! HOLIDAY IN THE USA Monday!
CLICK ON IMAGES TO ENLARGE
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EURUSD
WHAT ProAct Traders SEE: The Euro is near the 618 of the rise / hard ceiling of 1.3824 @ 1.3097. Not unlike what happened at this year’s low, where price fell below 1.20 by some 124 pips, the possible exists for further rise until exhaustion occurs above 1.30, bringing the greater decline back en force. I’ve found that when 618’s are reached without price making it to the 786, a trend resumption is more likely. We’ll see if this proves out this time.
Further, until we get this EuroBank “stress test” behind us, there’s no real way of knowing how the market is going to react.
What’s imminently clear, is that as the DOW / S&P fell 263 points on Friday, and with it, the CommDollars against the USD and the GBP against the USD, the Euro managed to hold its head up against everything except the Yen. Anomalous indeed.
The EurUsd is in the throes of its 5th wave, and now it’s a matter of either how far it extends, or how quickly it exhausts, either way, the pair has gone vertical this last week which are generally unsustainable, and many “Perfect Return” price level lie waiting below.
Looking at the Dailies, Friday ended up with a Doji / low close, and looks “toppy”. Perhaps a “slow” / sluggish consolidation will ensue until we get further data out. Maybe the equity markets will begin tanking this week. Who knows?
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USDJPY
WHAT ProAct Traders SEE: We are currently in a well-built channel down and at the bottom on the .786 fib extension. Will look for a retracement near the 86.00 and then should see a continuation to the 84.66-85 area ( support and the 1.270 Fib extension.
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EURJPY
WHAT ProAct Traders SEE: We have had a nice strong pullback which may continue to the resistance at 114.33. Any STRONG break of the trend line should produce a run to the .500 fibo at 110.34 or deeper.
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AUDUSD – A great smooth currency for Newbie’s!
WHAT ProAct Traders SEE: We have had a strong pullback – will see if it can break the .618 fibo. If so, will target the.786 if this holds will look for a ride to the S8 at 0.7768
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EXTREME CAUTION IS URGED – TRADE WITH STOPS!!!!!
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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. We monitor multiple indicators as well as established chart analysis.
There is No “Holy Grail” in trading systems. Do not use our research or any other trading system without proper research on the asset.
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.
