Stocks and Dollars

EUR/JPY formed a temporary bottom at 101.93 last week and recovered to 104.95. Such recovery is treated as consolidation in recent decline only. Hence, while another rise cannot be ruled out yet, even in that case, we’d expect upside to be limited by 106.98 resistance (50% retracement of 111.93 to

GBP/JPY’s recovery from 116.83 continued last week and with 118.76 minor support intact, further rise might still be seen. But after all, such recovery is treated as correction in recent decline only. Hence, we’d expected upside to be limited by 122.26 resistance (38.2% retracement of 130.83 to 116.83 at 122.17)

EUR/USD turned into brief recovery last week but such recovery was likely finished at 1.3689 already. Initial bias is mildly on the downside this week for 1.3362 first. Break will confirm resumption of recent decline and should target 161.8% projection of 1.4939 to 1.3969 from 1.4548 at 1.2979, which is

EUR/USD turned into brief recovery last week but such recovery was likely finished at 1.3689 already. Initial bias is mildly on the downside this week for 1.3362 first. Break will confirm resumption of recent decline and should target 161.8% projection of 1.4939 to 1.3969 from 1.4548 at 1.2979, which is

September and the 3Q ended with many major markets closing around recent lows for the current decline. Perhaps most disheartening from a technical perspective is that most risk assets spent the early part of the week attempting to rebound, only to fail, leaving behind ominous price patterns. The CRB commodity

Month-End/Quarter-End rebalancing flows led to moderate USD buying vs. the Euro today. However, the 1.3400/10 level could offer short-term support as it sees an hourly Bullish Divergence as well as wave c 1.618 x wave a. In the chart below you will see the Elliot wave count for bulls

The GBP/USD held its ground to end this week’s trading after rallying for the first half and flattening during the second half. Friday’s price action was about to form a double top, but the support at 1.5530 held again for the third time this week. Note that the RSI in