Forex Charts
EURUSD – negates h&s top; threatening test of 1.3811/28
The Euro failed to hold below a small head & shoulders top and is again approaching 1.3832; above that level the idea of a wave-(2) correction is negated. Needless to say, confidence is waning concerning this outlook.
FX Daily
Lots on the agenda today. Main releases will be French and German flash PMI. We look for a very moderate increase in line with consensus. Following a steady increase earlier in the year, PMIs have been going sideways lately and
USDJPY – bearish shooting star forming at key 103.74 level
JPY is still holding the bullish up channel from the Oct 30 high but the test of the May high is forming a bearish shooting star candle in early NY trading and this is something to watch as the day progresses.
FX Daily
ECB Vice President Vito Constancio, ECB chief economist Peter Praet and ECB board member Bernoit Coeuré are all scheduled to speak today. It will be interesting to hear if they have anything to say about
USDJPY – bullish consolidation marking time ahead of 104.60
Tuesday’s cycle day & momentum divergence at the high posted a minor high in JPY. The sell-off from the high was not impulsive and promotes our argument that prices are undergoing another bullish correction.
FX Daily
ECB-president Mario Draghi will speak before the European Parliament in connection with a discussion of ECB’s annual rapport. There could be downside risk to euro area industrial production for October as industrial production disappointed in both Germany and France.
USDCAD – channel, pivot and Fibonacci support at 1.0562
$CAD did not offer the “…Friday close above 1.0670…” that is necessary to break multi-year resistance. Instead prices have retraced to recent pivots at 1.0609 and are approaching critical support at 1.0562.
AUDUSD – 4 targets project a wave-(5) low between .8831-.8778
Aussie is still set up to reach the midpoint and head & shoulders target near .8780. Three wave lower are in place and yesterday prices completed wave-(4) by retracing right to key resistance at
FX Daily
Market movers today * In Italy, Prime Minister Enrico Letta will present his new government’s programme ahead of a confidence vote in the Lower House and Senate.
FX Daily
In connection with the ECOFIN meeting EU finance ministers are expected to continue yesterday’s euro-group negotiations about a resolution mechanism for failed banks.
USDJPY – wave-5 rally to 103.74/104.60 could complete tomorrow
There is a cycle day tomorrow that could indicate a minor top in USDJPY as wave-5 of (3) completes. Upside targets include the recent 103.38 high and the May 103.74 high.
FX Daily
Banking union is expected to top the agenda at today’s euro group finance minister meeting, where an agreement on a single resolution mechanism for failing banks remains the main stumbling block.