Short-Term Currency Outlook: November 26, 2012
Trend Recognition | Nov 26, 2012 02:46AM ET
EUR/USD:
1.2972
Short-Term Trend: Uptrend
Outlook: I thought wave (F) of the Diametric formation from the July 2008 top was going to develop as a Flat pattern and that was the reason I expected a decline toward 1.2500 and below last week. But the last week's rally signals the structure of the suspected wave (F) will be different (not clear yet) and it seems the larger uptrend from the July 2012 low has already resumed. If correct, gains toward 1.3520 will be seen in the next couple of months. With this in mind I favor the long side here against the 1.2670 key Fibonacci level....
Strategy: Longs favored at 1.2870. Stop=1.2670. Target=1.35000
GBP/USD
GBP/USD: 1.6025
Short-Term Trend: Weak uptrend
Outlook: The last week's strong rally suggests wave D is already over and if that's the case, wave E of the suspected Neutral Triangle from June's low is already under way. Thus, one can favor the long side. The problem however is that I do not expect a huge upmove from here. My upside target is just above the 1.6300 level. So, I personally prefer to stay neutral.
On the downside, below 1.5880 negates, signals wave D is still under way....
Strategy: Stand aside.
USD/JPY
USD/JPY: 82.38
Short-Term Trend: Uptrend
Outlook: USD has continued its move higher and thus further confirms our long-term bullish idea here. Now, what we need, is a firm move above 83.800/84.10 area. Once we see such a move, the weekly chart will become positive as well (now the weekly chart is still neutral as long as below 84.10).
On the downside, the 80.60 level should provide strong support if a pullback develops from here. If the prices move back below 80.60, that will negate the afore-said bullish idea.
Get The News You Want
Strategy: Holding long from 81.30 is favored. Stop=80.30.
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.