Forex Charts
FX Daily
* The main market driver continues to be the US debt ceiling talks, which are likely to continue to create market volatility until a deal is struck.
USDJPY – after flag & wedge breakout, stalling at wedge target
The bull flag from 9/10 and the bullish falling wedge from 9/30 have resolved higher. The strong momentum (hourly chart) is indicative of a new impulsive rally;
EURUSD – a-‘ b-c, bull flag decline sets up rally to new highs
The bull flag correction we laid unfolded according to plan and now an a-b-c pullback is complete.
FX Daily
Market movers today *In the US the House is expected either today or Saturday to vote on a bill that will temporarily increase the
FX Daily
Market movers today * President Barack Obama has scheduled meetings with House Republicans in a first sign of easing the logjam.
USDJPY – break of 97.47 needed to confirm initial 5-wave advance
One way to discern a turn is to look for an initial 5-wave advance (the direction of a 5-wave move indicates thelarger trend).
EURUSD – < 1.35 channel support is critical 1.3462/48 zone
The a-b-c correction we have been outlining continues to unfold lower as negative technical developmentsbuild. The trend line from early September is broken (and has already been tested),
FX Daily
Market movers today * In the US an agreement on increasing the debt ceiling does not appear to be imminent.
FX Daily
Market movers today * Focus in the market will continue to be on political developments in the US although a decisive breakthrough in the political wrangling does not appear to be imminent.
USDJPY – Wave-E bull flag sporting equality between down legs
On Friday we argued in favor of a bullish falling wedge; that outlook has not changed and the momentum divergences on the hourly chart continue to be supportive.
EURUSD – a-b-c correction to 1.3462/48 and then a new high
We raised the case Friday that “waning momentum [was] threatening [the] latest 1.3573 breakout”.
FX Daily
Market movers today * Focus continues to be on negotiations about a temporary funding bill for the 2014 budget-year and raising the debt ceiling before 17 October.