Talking Points
Unfamiliar with Gann Square Root Relationships? Learn more about them here.
Foreign Exchange Price Time at a Glance:
Price Time Analysis: USD/JPY
Charts Created using Marketscope – Prepared by Kristian Kerr
- USD/JPY tested key support yesterday at the 101.35 4th square root relationship of the year’s high, but did not close below
- Our near-term trend bias is higher while 101.35 holds
- The 2nd square root relationship of the year’s low at 102.75 remains critical resistance with a move over this level needed to trigger a more important push higher
- The latter part of the week is a minor cycle turn window
- A daily close below 101.35 will turn us negative on the exchange rate
USD/JPY Strategy: Square here. Awaiting 102.75/101.35 range to get resolved.
Price Time Analysis: GBP/USD
Charts Created using Marketscope – Prepared by Kristian Kerr
- GBP/USD remains in consolidation mode above the 38% retracement of the February range at 1.6595
- Our near-term trend bias is positive in Cable while over 1.6595
- The 16th square root relationship of the 2013 low at 1.6735 is key near-term resistance with a move over this level needed to confirm an upside resumption
- The first half of next week is a medium-term cycle turn window, but the end of the month looks especially significant from a longer-term timing perspective
- A close under 1.6595 would turn us negative on the Pound
GBP/USD Strategy: Like the long side while 1.6595.
Focus Chart of the Day: SP 500
We begin each month by surveying the cyclical landscape of various key financial instruments. Judging by the unusual large amount of potentially important cycle turn windows slated over the next 20 trading days, March is shaping up to be a key inflection point for the year as a whole. Markets with important timing this month include EUR/CHF, SPX, Gold, Silver, Cable and the FXCM Dollar Index. Special attention needs to be paid to equities and precious metals around the middle of the month as the confluence of longer-term cycles at this time is very compelling. Month end looks quite important for the Pound.
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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