DailyFX.com -

Talking Points

  • Next week very important for the euro
  • USD/CAD nearing key downside pivot
  • USD/JPY advance begins to stall

Get real time volume on your charts for free. Click HERE

Foreign Exchange Price & Time at a Glance:

Price & Time Analysis: USD/JPY

Price & Time: In Search of A Low in the Euro Next Week

Charts Created using Marketscope – Prepared by Kristian Kerr

  • USD/JPY touched its highest level since late January earlier this week before stalling
  • Our near-term trend bias is lower in USD/JPY while above 102.75
  • The 1st square root relationship of the year’s high at 104.40 is the next near-term upside pivot
  • A turn window is eyed next week
  • A close under 102.75 would turn us negative on the exchange rate

USD/JPY Strategy: Like the long side while over 102.75.

Instrument

Support 2

Support 1

Spot

Resistance 1

Resistance 2

USD/JPY

*102.75

103.75

103.85

104.10

*104.40

Price & Time Analysis: USD/CAD

Price & Time: In Search of A Low in the Euro Next Week

Charts Created using Marketscope – Prepared by Kristian Kerr

  • USD/CAD traded at its highest level since early May on Tuesday before encountering resistance at the 2x1 Gann angle line of the year’s high near 1.1000
  • Our near-term trend bias is higher in the exchange rate while above 1.0855
  • A close over 1.1000 is needed to re-instill positive momentum and signal a new leg higher is underway
  • A minor cycle turn window is seen early next week
  • A move under 1.0855 will turn us negative on Funds

USD/CAD Strategy: Square.

Instrument

Support 2

Support 1

Spot

Resistance 1

Resistance 2

USD/CAD

*1.0855

1.0880

1.0905

1.0950

*1.1000

Focus Chart of the Day: EUR/USD

Price & Time: In Search of A Low in the Euro Next Week

EUR/USD fell to its lowest level in almost a year on Wednesday before finding support near the 38% retracement (polarity) of the 2011 to 2012 decline in the 1.3150 area. My cycle work suggests that next week should prove important for the exchange rate from a timing perspective. Originally I had anticipated that this key period around the start of September would end up being some sort of secondary high in the single currency, but the August correction never materialized. With sentiment now at dangerous extremes (EUR DSI at just 6% bulls) and seasonal analysis showing that September is one of the stronger periods of the year for the euro, factors seem to be aligning for some sort of decent low next week. With the highly anticipated ECB meeting coming right around the idealized turn date I am expecting that the actions taken by Draghi & Co. will probably be interpreted as a disappointment by the market as a whole. Key reaction levels over the next few days are seen at 1.3125, 1.3085 and 1.3055.

To receive Kristian’s analysis directly via email, please SIGN UP HERE.

This publication attempts to further explore the concept that mass movements of human psychology, as represented by the financial markets, are subject to the mathematical laws of nature and through the use of various geometric, arithmetic, statistical and cyclical techniques a better understanding of markets and their corresponding movements can be achieved.

Related Articles
  1. Forex Fundamentals

    Chinese Yuan an Unlikely Reserve Currency

    As the world's second largest economy, China's challenge to America’s dominance includes a push to make the yuan (RMB), the world’s reserve currency. Whether it can do that now is unclear.
  2. Economics

    How Currency Enforcement Helped Sink The Trans-Pacific Partnership (TTP)

    One particular barrier to trade that has received much attention of late and caused delays in negotiations of the TPP is exchange-rate manipulation, by which a country artificially devalues its ...
  3. Forex

    Top U.S Forex News Sites

    Breaking news moves forex markets. Here are the top U.S. sites for tracking forex news.
  4. Investing

    Financial News Comparison: Bloomberg Vs. Reuters

    Access to financial information has grown with the expansion of digital news. Bloomberg and Thomson Reuters lead the pack, claiming a majority of the business information market.
  5. Economics

    Who Benefits From South Korea's Lowered Interest Rates?

    South Korea is the latest country to cut interest rates in an attempt to stimulate economic growth.
  6. Forex Education

    The Top Uses For P2P Currency Exchange

    Peer-to-peer (P2P) currency exchange networks offer a viable and cheaper alternative for buying and selling currencies.
  7. Forex

    Steps To Open An Offshore Forex Account

    Here is a simple breakdown of how to open an offshore forex account for US-based users, including legal requirements.
  8. Entrepreneurship

    Top Forex Trading Apps

    A brief overview of the top apps that help forex traders with on time information, charts and more.
  9. Investing Basics

    The Risks Of Buying Bitcoin

    Virtual currency is probably here to stay, but what about Bitcoin specifically? Does it have a first-to-market advantage? What are the risks involved?
  10. Forex News

    How The Forex "Fix" May Be Rigged

    When it comes to forex, some types of "fixes" are legal. But some really aren't.
RELATED TERMS
  1. No results found.

You May Also Like

Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!