Weekly Review--103011
EUR/USD: The WR1 is 1.4270 amd it is doubtful this pair will make it that high this week. Look for the downtrend that started on Friday to continue throughout this week. Both the WS1 at 1.4018 and the WS2 at 1.3892 present cluster events. The other level to look for is 1.3966, as that is the combination.
The week started with a rush. It not only was doubtful the 1.4270, this pair never retraced, and the cluster events were taken out with ease on Monday. The dip for the week at 1.3607 was hit on Tuesday.
USD/JPY: This pair is still waiting for the breakout, as it has been very tight for it lately. Bearing that happening this week, look for the WS3 at 75.00 to contain on the downside. On the trip north, look for the WR2 at 76.27 to contain, but if it don’t look for a strong move to the WR3 at 76.64 to be hit in a hurry.
The dip was made at the beginning of the Tokyo session on Monday at 75.55, 6 pips under the WS1. From there, we got the breakout we were looking for as the peak was 79.52.
GBP/USD: The correction to the MT move north has not begun yet, but it will this week. The WS2 at 1.5970 represents a cluster event and will contain this week. Price action this week will say a lot as to which way this pair will go in the near future.
The correction start, as promised, as the dip was 1.5874. Initially, the WS2 held, as we had a strong move off it. Later the reversal plunged it to the aforementioned dip.
USD/CHF: There is strong R ay the WR1 at .8713. Because of the infancy of the correction, that R figures to be broken. The WR2 at .8799 should contain. MT, this pair is still headed much lower.
The WR3 at .8940 was need to contain as the peak was .8958.
EUR/CHF: It’s been getting tight for this pair of late. It’s still due to break out for its correction. This week the top of the daily cloud at 1.1930 will contain if it makes it that far. After all, the WS3 is only 1.2055.
It still has been tight as the dip was 1.2129, just 5 pips from the WS2.
AUD/USD: This pair is headed back to the daily TL, currently at 1.0575, which is also making for a perfect confluence with my WS1. If that is broken, then it means an abrupt fail to the WS2 at 1.0451, and then we get a correction from that point.
The pair continue long past the WS2 as the dip was 1.0202, 43 pips on the other side of the WS3.
USD/CAD: I had been talking about this pair when it first began the drop that we could get a move all the way back to the .9500’s. That move is coming along nicely, but this week the first correction of any significance could take place. The two levels to watch will be the WS1 And WS2 at .9828 and .9741, respectively .If price action makes it to the latter, hen it will form a nice confluence with the bottom of the weekly cloud. Also, if it makes it to the latter, then we will have to wait until next week before we see the first bullish weekly candle in what will be 5 weeks.
We got that significant correction as the peak was 1.0227, just 10 pips on this side of the WR3.
NZD/USD: There is little doubt that the weekly tenken WS2 combo at .8019 is going to be containment for this week, and that is if price makes it that low. MT, this pair has strong momentum north on the weekly, and is headed to at least .8384, most likely much higher.
I was wrong on the WS2 containing. It kept going to .7805.
EUR/GBP: In the last Weekly Forecast, I talked about how this pair is headed back to .9000. There was a strong thrust on Thursday that added momentum to the outlook. In order for the clear view back to .9000 to be maintained, the top of the daily cloud at .8706 needs to contain, and we need a weekly finish above .8746.
The momentum failed as the move north is delayed. The market closed at .8599.
EUR/JPY: This pair could be in for some consolidative price action this week. The correction that began on Friday should continue to at least 106.60, but be contained at the WS1 at 106.27. If that is broken convincingly, then it is time for reevaluation, because, MT, this pair appears headed to 100.27.
The dip was in the middle of the 2 reference points at 106.48. The pair took off to the peak at 111.56, then moved strongly back to the close for the week at 107.86, so the consolidation continues.
GBP/JPY: I’ve mentioned this quite a lot about this pair in the past, but I’ll do it again. The weekly TL is getting another test, and it is due to give out. Current level is 123.03. Considering the WR2 is 123.27, it may not happen this week, as it is probably due for a correction to start the week. Nevertheless, it is forthcoming, as we see a move back to 126.93. The move to the bottom of the weekly cloud at 131.13 may now be a little too aggressive of a target because of the severe time lag.
The weekly cloud was broken as the pair peaked at 127.29.
