Talking Points
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Foreign Exchange Price Time at a Glance:
Price Time Analysis: USD/JPY
ChartPrepared by Kristian Kerr
- USD/JPY broke above the 61.8% retracement of the June – July decline this morning
- Our near-term trend bias is higher in the exchange rate while above 122.00
- The mid-June high around 124.40 is the next upside pivot of importance
- A very minor turn window is eyed early next week
- A close under 122.00 would turn us negative again on USD/JPY
USD/JPY Strategy: Like buying on weakness against 122.00
Price Time Analysis: GBP/USD
ChartPrepared by Kristian Kerr
- GBP/USD stalled yesterday at the internal trendline connecting the April/June lows
- Our near-term trend bias is lower in Cable while below 1.5695
- A move under 1.5485 is needed to re-instill downside momentum
- A very minor turn window is seen tomorrow
- A daily close back over 1.5695 would turn us positive on the pound
GBP/USD Strategy: Like the short side while below 1.5670
Focus Chart of the Day: USD/CAD
USD/CAD broke above the March high yesterday to trade at its highest level in more than 6-years. A weekly close above 1.2830 will further confirm the breakout and set the stage for a more important run higher in the weeks ahead. Psychological resistance is to be expected around 1.3000, but the 127% extension of the March – May decline around 1.3080 looks to be a more important upside attraction/pivot. A rate-of-change (ROC) divergence on the daily is a minor concern, but only weakness under 1.2650 would warn of a false break to the upside.
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— Written by Kristian Kerr, Senior Currency Strategist for DailyFX.com
This publication attempts to further explore the concept that mass movements of human psychology, as represented by the financial markets, are subject to the mathematical laws of nature and through the use of various geometric, arithmetic, statistical and cyclical techniques a better understanding of markets and their corresponding movements can be achieved.
To contact Kristian, e-mail kkerr@fxcm.com. Follow me on Twitter @KKerrFX