Analyst flags 9 bargain stocks in a ‘Black Friday’-style dip
The JPY pairs took a further step towards their targets and therefore towards a deeper correction. Having said that, not all is exactly simple or straightforward. As things stand, should the target I have set hold, the limit I see for the downside in USD/JPY will not be enough to drive EUR/JPY to its target retracement. This tends to suggest that the correction in EUR/JPY could be very long and complex which is actually implied by the earlier, linked correction. In turn, that complicates the next step in terms of how EUR/USD and USD/JPY develop next, the latter also expected to see a long, deep correction before too long. It certainly keeps my head twirling in somersaults trying to envisage how this will pan out.
In the background is also the prospect of some rather volatile developments in the near future that encompass both Forex and equity markets. At least I feel it should. I know from my expected outlook for the Dollar, assuming I have this correct, that we’re in for some sharp developments soon and I’m not a great equity bull at these levels. Equities just have a slight ambiguity at this stage and it’s more about timing and whether we still have deeper corrections before the final high. It does seem quite an eclectic mix. Just be aware that the current calm will break at some point.
For the Europeans the additional strength in
On the other hand the Aussie still looks like extending higher but once the upside target is satisfied should then see a lengthy correction.
So overall it’s quite a mixed bag. EUR/USD and USD/CHF need close observation. Should USD/JPY top out as planned we should see some decent movement there and in EUR/JPY.
In the background is also the prospect of some rather volatile developments in the near future that encompass both Forex and equity markets. At least I feel it should. I know from my expected outlook for the Dollar, assuming I have this correct, that we’re in for some sharp developments soon and I’m not a great equity bull at these levels. Equities just have a slight ambiguity at this stage and it’s more about timing and whether we still have deeper corrections before the final high. It does seem quite an eclectic mix. Just be aware that the current calm will break at some point.
For the Europeans the additional strength in
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GBP/USD took me by surprise and is pointing to a maximum correction. There are still a few more legs to go in all three but there is risk of some slight ambiguity. It’s obviously easy to say the Dollar will correct higher or it will just resume the decline but there is a balance between the two at this point and it would be well to understand where each is confirmed. Thus take care over the first half of the day.On the other hand the Aussie still looks like extending higher but once the upside target is satisfied should then see a lengthy correction.
So overall it’s quite a mixed bag. EUR/USD and USD/CHF need close observation. Should USD/JPY top out as planned we should see some decent movement there and in EUR/JPY.
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