🗽 Which non-US stocks are showing attractive entry points with the US market closed?Ask WarrenAI

Could Be A Similar Day To Yesterday

Published 06/04/2015, 12:32 AM

The follow-through lower in the dollar was mild yesterday. I don't think the losses have yet found a low and overall there still seems to be more potential for losses to continue. However, these don’t look like being too direct initially and more likely there could be a period of corrective development. So the focus over the first half of the day in particular should be to confirm dollar lows and wait for bearish reversal indications to develop.

If there is any single currency pair I’d single out for a modest move it’s GBP/USD that should make its way higher again. I don’t want to suggest that this initial move is going to be particularly strong because a decent correction will still be due, but overall I feel this has quite decent upside potential overall.

AUD/USD is another interesting pair. It has a potential double top which, if triggered would imply quite a swinging move since the rally over the past two days is a single unit and therefore will require another push higher. So it’s a matter of either a limited correction – without triggering the double top – or a direct rally.

USD/JPY has reverted to slow motion. It appears to have a bullish outlook but I find the balance between EUR/USD and EUR/JPY quite a complicated one – that has potential to break the bullish view through the individual currency pairs. Just keep the scenarios in mind to be able to take advantage.

So, really it looks like a workmanlike day.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads.

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
Read Next

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.