Dollar Mostly Weaker as Correction Continues.Summary: We maintain that a corrective advance is underway from 1.3880. The rally to 1.4480 is probably wave a (the first wave) in a 3 wave correction. Wave b may...We maintain that a corrective advance is underway from 1.3880. The rally to 1.4480 is probably wave a (the first wave) in a 3 wave correction. Wave b may be complete just below the 61.8% of 1.3877-1.4485. We maintain that a corrective advance is underway from 1.3880. The rally to 1.4480 is probably wave a (the first wave) in a 3 wave correction. Wave b may be complete just below the 61.8% of 1.3877-1.4485. The USDJPY dropped below the July low and promptly reversed. We have been expecting a resumption of the long term decline that began at 124.13. This is our preferred count as long as price is below 110.65. The alternate count treats the decline from 110.65 as an X wave within a complex correction. The GBPUSD GBPUSD British Pound Sterling to United States Dollar (foreign currency Eexchange) is headed higher in what may be a B wave within either a flat or triangle that is underway from 2.1160. As such, we are expecting a large portion of the decline from 2.1160 to be retraced. Resistance on the daily is not until 1.88. Similar to the EURUSD EURUSD Euro to US Dollar (foreign currency exchange) , a low could be in place at 1.7733. 5 waves down in the USDCHF from 1.1422 suggests that at least a temporary top is in place. Still, it appears that small b and c waves need to unfold before there is an opportunity to sell the USDCHF against 1.1422. A potential path is mapped out on the chart. The USDCAD reversed at a Fibonacci confluence confluence /con·flu·ence/ (kon´floo-ins) 1. a running together; a meeting of streams.con´fluent 2. in embryology, the flowing of cells, a component process of gastrulation. (61.8% ext. of the .9055-1.0378 advance and 61.8% retrace of the decline from 1.1875 to .9055). We are expecting an important top to form. That top could be in place just above 1.08. On the AUDUSD daily chart, 5 waves down are visible from above .98 to .7897. A sharp pullback Pullback A falling back of a price from its peak. This type of price movement might be seen as a brief reversal of the prevailing upward trend, signaling a slight pause in upward momentum. ended at .8267 and weakness has continued. It is possible that the decline from .8267 is the next leg (wave 3 or C) in the long term decline from .9856. 5 waves down from .7921 appear to be complete and the NZDUSD has built a base to work higher from. As such, a countertrend move back to the .7200 area or higher is expected. This level intersects with the underside of a former support line that was broken in August. The NZSDUSD has held up better than the AUDUSD, staying above the low made last week. This is a potential divergence divergence In mathematics, a differential operator applied to a three-dimensional vector-valued function. The result is a function that describes a rate of change. The divergence of a vector v is given by that warns of a larger advance. Jamie Saettele writes Forex Forex See: Foreign exchange Technicals: The Day Ahead, Monday-Thursday (published at 6 pm EST EST electroshock therapy. EST abbr. electroshock therapy ), Daily Technicals every weekday morning (9 am EST), COT analysis Cot Analysis, also known as DNA reassociation kinetics, is a biochemical technique used to study genome structure and organization. It was first developed and utilized by Roy Britten and his colleagues at the Carnegie Institution of Washington in the 1960s. (published Monday mornings), and analysis of currency crosses throughout the week. He is also the author of Sentiment in the Forex Market. Contact at jsaettele@dailyfx.com 2008 Al Bawaba (Albawaba.com) Provided by Syndigate.info an Albawaba.com company |
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