Markets continue to see ever increasing volatility and vulnerability. We have seen the metals begin to correct but have yet to see that pullback drag the Euro and other majors down with it. I expect to see the Dollar begin to catch a bid this week again albeit temporary. The stock markets have been eerily quiet the last few weeks making me think it is a calm before the next storm.
EUR/USD:
This par has hit our upside objectives and then some. We are now looking for selling opportunities on rallies near the 1.37 level.
GBP/USD:
We have seen this pair push 1.60 as I mentioned in the last issue. We are now looking to sell strength above that level. I am looking for bearish harmonic patterns to time the entries.
USD/JPY:
This pair is still slopping and chopping around. I remain a buyer of major weakness. Looking for a charge back towards 85.00 in the coming weeks.
USD/CHF:
This pair is also simply stuck. Near term we see it continuing to be manic depressive so the best bet is to focus on other markets.
USD/CAD:
Still dancing around parity. I expect this dance to go one late into the night. Overall I will look to trade both sides as the harmonic patterns present themselves.
AUD/USD:
Now that we have seen parity breached once again we are sellers of strength above it.
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