S&P500: Bullish Waves Could Slow Down At 2130-2140

Grega Horvat

S&P500 bounced nicely from 2056 levels last week and recovered with clear impulsive manner that caused more strength this week. we were looking for move to a new high which were achieved yesterday, so we need to keep in mind that S&P can be in late stages of an ending diagonal. If we are correct then reversal down will follow in sessions ahead, most likely from around 2130/2140 area. more…

GBP/JPY: Returning to the Channel

Neal Gilbert

The North American trading session has been a bit of a practice in duality as US data showed both strength and weakness with early releases. The employment situation continued to prove robust with Initial Jobless Claims falling by 1k from last week’s total to 264k and Continuing Jobless Claims remaining low as well. In fact, both of the employment figures this morning are showing 4 week averages at levels unseen since 2000, and are likely earning gold stars from the Federal Reserve. Since the Fed has employment as one of their cornerstones for rate decisions, the consistency and breadth of improvements are extremely encouraging. more…

GBP/USD: Bullish Swings In Play Within A Zig-Zag

Grega Horvat

GBP/USD keeps trading higher so we are looking now at a new wave count that shows A-B-C rally from April lows. That’s called a zigzag pattern that has a 5-3-5 structure. Based on latest bullish swings, we assume that wave C is in play but still incomplete as we need five waves before we may look for a bearish turn. At the moment we see prices in an extended blue subwave (iii) that can be looking for a move up to 1.5800 and then even to 1.5900 after fourth wave retracement. So for now, bullish trend remains in play, unless we see a turn back to 1.5357. more…

EUR/USD Is Doing The Dance

Peter Adamson

In my last post I forecast a short correction before a continuation of the current rally. There are three reversal dates coming up. I pointed out that I would be sceptical of a continuation at the first date, 5 May, as it was too soon for this correction. The market did not disappoint. It reversed on that date right on schedule but the reversal ran out of steam and the market came back down. As expected, it is doing the dance to confuse us before it resumes. more…

NZD/JPY: Free Fallin’

Neal Gilbert

The second half of the North American trading day meandered along with very little fanfare for many trading instruments as market trends that started the day continued to persevere to the end of the day. Oil fell below $60 in WTI, the USD enjoyed a little bit of strength, and the NZD continued to get shellacked with reckless abandon. The reason why everyone is down on the Kiwi to start the week has to do with the belief that the Reserve Bank of New Zealand will be cutting rates not once, but twice before the calendar turns to 2016; a nearly opposite belief of what was expected to start the year. more…

EUR/GBP To Make New Lows?

Ville Vainio

May 10, 2015 @ 10:01

EUR/GBP made first corrective move after the strong decline. I have labelled these as minuette waves 1 and 2, although minuette wave 2 correction is probably not finished yet. This first wave down after the large corrective minor wave 4 is quite powerful and would suggest the next wave down (minuette wave 3) to take EUR/GBP at or near new lows, below 0.70. more…

USD/CAD Can Turn Back To Bullish Mode

Grega Horvat

USD/CAD is making a deep retracement but still with three waves from the highs with current wave C) approaching to 38.2% Fibonacci level where it may complete a corrective fourth wave. Despite a strong bearish turn last week, we see big trend bullish, so we would not be surprised if pair will find support this week. Ideally, market will move back above 1.2400 that will put wave (5) in play for a new high. On the downside pair could be looking for a support at 1.1900-1.2000 zone. more…

AUD/CAD: Aussie’s Employment Turn

Neal Gilbert

North American markets once again had a rough go around today with the major US-centric equity markets making a third straight run lower. The USD didn’t fare much better, losing ground against the EUR, GBP, JPY, and CHF, but fared much better against the commodity currencies of AUD, NZD, and CAD. Part of the reason commodity currencies struggled may have to do with the fact that commodities either fell or went sideways for a majority of the day. WTI fell off after surging in the early hours, and the precious metals didn’t make any headlines in either direction. Of course, the commdollars could also be reacting to their own set of circumstances surrounding their employment situations. more…

EUR/USD Overbalance – Largest Monthly Gain In Four Years

Peter Adamson

Late in March, I stated that I believed the Euro had made a long-term bottom at the end of a 360 week cycle and would now begin a long uptrend. Subsequently, it reacted the way markets react at major support at major cyclical turning points. It has not disappointed. The market has since amplified its overbalance, even as the USD bull market has run out of steam in virtually every currency pair. more…

USD Index: Eyes New High After Correction

Grega Horvat

USD remains clearly bullish on daily chart with higher highs and higher swing lows forming since May 2014. Currently we see price moving sideways, in a corrective pattern that can lift price into V, towards 102 or even 104 level but only if we will get a bounce up from current trendline. more…

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