Yen Breaking From Consolidation - Next Big Move Underway?
"EURUSD 1.3400 has proven formidable as resistance and there is no change in our outlook. There is plenty of bearish evidence on the daily. RSI is divergent at the recent high and just declined below 70. CCI is above 100 and a decline below 100 would signal a reversal. Regarding the longer term structure, it is appropriate to treat the entire rally from 1.1640 as a 3 wave correction. There are 7 waves higher but 7 divides into two 3 wave corrections linked together by an X wave. This is known as a double zigzag correction and is labeled W-X-Y. We are looking lower. It is possible that the rally extends higher but the oscillator action on the daily gives us reason to be skeptical. That said, the shorter term structure remains bullish due to the 3 wave decline from 1.3413 to 1.3254. This evidence indicates that a rally above 1.3372 eventually leads to a break of 1.3413. Treat 1.3372 as the bullish pivot and 1.354 as the bearish pivot."
"USDJPY The break below 117.39 as well as short term channel support favors our initial bearish outlook that treats the rally from 115.76 as corrective. We are now looking for the rally from 115.76 to be completely retraced but initial support is at 116.70/80 (potential triangle support). Former intraday support from last night is now resistance at 117.65 and bears are firmly in control as long as price remains below 118.01. "
"GBPUSD We are still looking for one more high to be registered above 1.9729 before a big turn lower. We are looking higher in order for a 5th wave to complete a 5 wave bullish sequence that began at 1.9243. Wave 1 would equal wave 5 at 1.9823. The bullish structure is strong above 1.9569. The 3 wave setbacks from 1.9729 and 1.9726 both favor the short term bullish outlook. "
"USDCHF The USDCHF dropped below our short term trendline and the rally from 1.2030 to 1.2230 is in just 3 waves. The evidence requires that we abandon our bullish stance. The 20 day has held as resistance as well (currently at 1.2189). The short term structure does not look too clear at this point but the aforementioned 3 wave rally suggests that the 1.2030 low will be tested again. "
"USDCAD This big decline is likely the C wave of an A-B-C decline ... read the whole article
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