💎 Bargain Hunter: Undervalued stocks with massive upside potentialGet the list

Quick Resumption Of Dollar Losses Is Needed

Published 12/02/2013, 11:57 PM

Ouch. Yesterday was a set back. Was it a fatal one for my count? Not exactly, and perhaps I should say probably not. However, it is courting a possible breakdown and with a very slim margin. Therefore what happens today is going to be very important. In some ways perhaps it’s not so surprising given the major wave degree within which I feel we’re navigating. It’s a weekly, well actually a multi-year corrective structure, and it’s in corrective structures where the potential for greater noise across all wave degrees can rise considerably. This tends to push the corrections to the limits, and often in complex structures.

So, frankly we need a pretty quick resumption of dollar losses. This, is so as Price Equilibrium is really on the verge of reversing all the good (if slow) work that has been done over the past two weeks. As long as this occurs all should be well. If not, then look for follow-through from yesterday’s moves. At this point, considering the less than encouraging indications, I prefer to wait for confirmation of my preference to be proven, or not. This applies across the Europeans.

The Aussie is a slightly different prospect, although itself often generating its own surprises. I can’t say the expected recovery has been totally straight forward but does remain positive and I’d like to see it continue that way. However, this is a correction higher within a larger downtrend so keep one eye over your back.

The JPY pairs, the USD/JPY a little stronger than anticipated while the EUR/JPY played the role of a bit-part actor. The key pair here is the USD/JPY. The signals look a little ominous to me. Thus, how the relative moves between the USD/JPY and EUR/USD – which will see a stronger move – will rule the cross which does seem set for a correction before too soon but not yet the end of the rally. That does tend to argue for a positive EUR/USD.

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?

With valuations skyrocketing in 2024, many investors are uneasy putting more money into stocks. Unsure where to invest next? Get access to our proven portfolios and discover high-potential opportunities.

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%. That's an impressive track record.

With portfolios tailored for Dow stocks, S&P stocks, Tech stocks, and Mid Cap stocks, you can explore various wealth-building strategies.

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.