Tanalys

Price & Time: Moment of Truth for European Currencies

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 Strategy: Like being square for the time being, but may look to buy a break of 102.75.

Price Time Analysis: GOLD

Charts Created using Marketscope – Prepared by Kristian Kerr

XAU/USD Strategy: Continue to like the long side while over 1281. May look to trim existing positions around the middle of next week.

Focus Chart of the Day: USD/CHF

The short-term cyclical picture in EUR/USD has been a bit of a mess of late as the choppy price action has made the pair difficult to analyze. As such, our main focus in Europe has been on USD/CHF which seems to have a little clearer picture. In USD/CHF, the next two days look potentially important as several short-term cycles will be converging. This argues for a reversal of some kind over the next couple of trading days. A move back over the 50% retracement of the December to January range at .8975 would probably be evidence enough of a short-term bottom. Further weakness after Monday, however, would mean our cyclical interpretation was wrong. This would likely set up a deeper decline that at least tests last year’s low.

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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

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