Forex Charts

USDJPY – RSI divergence developing at channel resistance

This rally to a new high does satisfy wave-5 and there is finally a proper momentum

We now expect euro-area HICP to remain unchanged at this cycle low of 0.3% inOctober.

The failure at .8900 coincided with a failure at channel resistance.

Sterling continues to honor the downtrend line from mid July.

Yesterday’s sell-off met our 1.2620 target but the break below negated our small bullish triangle outlook.

Spanish and German inflation will provide information about the impact of thedecline in the oil price during October.

The main event is the Fed meeting tonight. Given the recent market turmoil, the Fedis likely to

In the US, durable goods orders are due for release and consensus is for an increase of0.5% m/m in September.

The Euro continues to trade in a messy overlapping range which supports our case that we are mired in a wave-4 correction.

Focus will be on the ECB’s asset quality review and stress test, which were releasedyesterday.

Yesterday’s call for a sharp rally was realized as prices broke 107.50.

Kiwi has tested and failed at .8020/50 which was the old breakdown level and a large 38.2% retracement.