Weekly Technicals

Aussie, Euro…and Sterling Pound
click on 'my Charts' page to view Charts

Gonna keep things as simple as possible and just stick to what the wave patterns are hinting. Will stick to the mid term outlook. To view the Charts, go to ‘my Charts’ page.

Aud/Usd: my focus is now on 1.0145 and the mid-term channel support (see pink channel in chart). If 1.0145 is breached, we could be witnessing a new Impulse trend (wave 3) that could take us down towards the Long term Trend Support, just above 0.9860 (blue arrow in chart). 1.0385 is Resistance.

I have been calling for a meaningful correction in risk rallies and this might be it. As we watch 1.0145 keep an eye on the S&P500 or any of your favourite risk indicator. I will do a separate Technical Analysis on World Indices some time next week.

Conclusion for Aud/Usd: I do not like selling the Aussie. I am a buyer much lower from here.

Eur/Usd: my focus is now on 1.3080 / 1.30 / 1.2970 Supports, where I expect a bounce. Previous Support 1.32 is now Resistance.

Though I am still a Euro Bear, I am not in favour of doing anything at current levels. My preferred strategy is to wait for price to break higher before shorting. View ‘my Charts’ for technical levels.

As for the Wave Counts, if 1.2970 is breached the alternate count would be, that a 3rd Impulse is at work (similar to that of Aud/Usd). But we shall cross that bridge when we get there. For now, lets just look at the near term levels and see how it plays out.

It is crucial to take note that in the Monthly, the pair is still in consolidation above the 200MA and Long Term Trend Support. Which means the long term Bullish Trend is still unbroken.

Conclusion for Eur/Usd: I am a seller, higher.

Apart from these pairs, I am keeping a close eye on the price action for the Sterling Pound. No actionable trade at this point. Staying flat.

have a good week ahead.