Aud/Usd and Eur/Usd waves and charts in the link https://www.thelfb-forex.com/content.aspx?id=35084
A very interesting start to the new week; oil is trading at near-term lows, currently threatening the lowest price of the year at $84.99 per barrel from January. The market also made new dollar highs against most currency pairs; Eur/Usd is down at 1.3550, Usd/Cad is up above 1.0900, Aud/Usd is also down at the new support area. The Jpy looks to be the strongest currency at the moment. Prices on Usd/Jpy are down at the 102.85 lows, but when the dollar trades in the correction waves we will probably see a lot stronger Jpy than it is now. So, the Eur/Jpy could be down at 135.00 area in the next few weeks or months. On the Friday we were talking about gold, and the technical long opportunities around $800 as traders look to move to relative safety over the coming weeks.
An amazing drop lower on this pair from the middle of July 08 has made a move of more than 2300 pips, and the market is still pushing down strongly with no turning point as yet. The market is currently trading in very powerful support area between 0.7350 and 0.7500. The market found this support area as one of three significant turning points; the first two are upper and the lower trend lines of the triangle between 2004 and 2007 (the huge red wave 4). The next important support level is the 76.4% retracement of the whole upward move from the middle of 2004 to the yearly high. All of this in one place should slow down the U.S. dollar moves, and may try to push it to the correction waves of the red wave B, which could be the case in the next few weeks or months if the mentioned support areas hold. The closed prices of this week should be above 0.7350 which could be the signal for a possible bounce, and that is all subject to the Reserve Bank of Australia’s interest rate decision on Monday evening. See you tomorrow. Grega.