Dollar Bull Trend Remains Intact
DailyFX.com provides free FX news, trading resources, and market analysis to the forex trading community.
Written by Jamie Saettele, Senior Currency Strategist
The euro / dollar remains in a bear trend and could fall to a new low (below 1.23) this week.
The euro / dollar trend is down as long as price is below channel resistance and 1.2861 specifically. Still, until a break of the large range (1.30-1.23) that has held since late October, confidence in directionality is low. For now, I am sticking with the triangle count (4th wave complete).
The larger USDJPY trend is down so strength should be sold. It is unclear though whether or not the rally from 90.86 is complete. As long as price remains below 98.31, bearish potential is significant. However, support from the 61.8% of 90.86-100.60 is a warning that 100.60 could be broken (since 61.8% is a level that tends to hold B waves of zigzags).
Still confined to a steep channel, the British Pound remains bearish. There is no sign of a bottom, although channel support comes in just below 1.43 this week.
Short term USDCHF structure is unclear but the long term wave count presented in the monthly forecast is bullish. Higher highs and higher lows since the March low favors bulls as does the break above a line from late 2005. Round number resistance at 1.20 has held to this point but a break higher is expected. The August 2007 high is the next level of chart resistance just above 1.22.
For the rest of this article, click HERE, and see daily analysis of USD/CAD, AUD/USD and NZD/USD
DailyFX.com provides free FX news, trading resources, and market analysis to the forex trading community.
DailyFX.com provides free FX news, trading resources, and market analysis to the forex trading community.
Written by Jamie Saettele, Senior Currency Strategist
The euro / dollar remains in a bear trend and could fall to a new low (below 1.23) this week.
The euro / dollar trend is down as long as price is below channel resistance and 1.2861 specifically. Still, until a break of the large range (1.30-1.23) that has held since late October, confidence in directionality is low. For now, I am sticking with the triangle count (4th wave complete).
The larger USDJPY trend is down so strength should be sold. It is unclear though whether or not the rally from 90.86 is complete. As long as price remains below 98.31, bearish potential is significant. However, support from the 61.8% of 90.86-100.60 is a warning that 100.60 could be broken (since 61.8% is a level that tends to hold B waves of zigzags).
Still confined to a steep channel, the British Pound remains bearish. There is no sign of a bottom, although channel support comes in just below 1.43 this week.
Short term USDCHF structure is unclear but the long term wave count presented in the monthly forecast is bullish. Higher highs and higher lows since the March low favors bulls as does the break above a line from late 2005. Round number resistance at 1.20 has held to this point but a break higher is expected. The August 2007 high is the next level of chart resistance just above 1.22.
For the rest of this article, click HERE, and see daily analysis of USD/CAD, AUD/USD and NZD/USD
DailyFX.com provides free FX news, trading resources, and market analysis to the forex trading community.
