Nvidia to resume H20 chip sales in China, announces new processor
No, my keyboard didn’t get stuck. It represents total confusion over the two Continental Europeans. The lack of losses in the dollar and more direct gains, even if by a marginal degree, would appear not to make sense. Dollar bearish divergences have been broken – although arguably, should we now see losses then 4-hour momentum would still generate another divergence. Hourly momentum looks firm. However, both provided a Key Reversal Bar in the 4-hour charts to hot both hourly and 4-hour Price Equilibrium Clouds. Nor have we come particularly close to (dollar) swing lows that would confirm the divergences.
Thus, we have a big conflict and one that needs confirmation on both sides of the market. At this point, I’ll add GBP/USD into the equation. Now, this provided a decisive rally that reached just 2 points above my target. In the process it has destroyed an alternative bearish impulsive structure. Thus, the implication is bullish – but whether direct or following a deeper correction is the next puzzle.
The Aussie extended a little lower to an unusual projection that I don’t normally see, but is valid. We should see a correction but the downside is not yet over.
USD/JPY exercised its prerogative to see the extension lower from 101.67 to a deeper than normal final leg in the current wave. Therefore, it moved marginally below my lower target at 100.87 and shot back higher. Now, this is where we should see a long sideways range and what could be, over the next few days, a rather messy and whippy development due to earlier shallow corrections. Play the range in this one.
Quite what EUR/JPY will do is very clearly influenced by the range trading in USD/JPY, and obviously by EUR/USD but as mentioned above this influence is less obvious and will require some delicate handling. Thus, overall the cross has a mix of influences and a slightly uncertain structure, at this point, I still feel that the larger picture still errs on the downside.
Which stock should you buy in your very next trade?
AI computing powers are changing the stock market. Investing.com's ProPicks AI includes 6 winning stock portfolios chosen by our advanced AI. In 2024 alone, ProPicks AI identified 2 stocks that surged over 150%, 4 additional stocks that leaped over 30%, and 3 more that climbed over 25%. Which stock will be the next to soar?
Unlock ProPicks AI